Prediction: 2 AI Stocks That Will Be Worth More Than C3.ai 2 Years From Now
Applied Digital and DigitalOcean might have brighter futures.
C3.ai (NYSE: AI) went public four and a half years ago to some enthusiasm, but it now trades nearly 40% below its IPO price. The enterprise AI software maker initially impressed investors with its catchy ticker symbol, the flexibility of its modules (which can be integrated into an organization's existing software), and its rapid growth rates. Unfortunately, its growth cooled off, its losses racked up, and its customer concentration issues became more apparent.
On the bright side, C3.ai's top-line growth accelerated again in its fiscal 2024 and fiscal 2025 (which ended in April), and it extended its crucial deal with its largest client, Baker Hughes -- which accounts for more than 30% of its revenue -- for another three years. It also won more federal contracts, secured new cloud partnerships, rolled out fresh generative AI tools, and expanded beyond its core subscription model by introducing consumption-based pricing options.
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