AI stocks surge after C3.ai's strong forecast
Technology
AI stocks surge after C3.ai's strong forecast
(Reuters) - Shares of artificial intelligence-based (AI) product makers zoomed in premarket trade, as a strong forecast by retail investor darling C3.ai Inc (AI.N) amplified an ongoing euphoria driven by the launch of OpenAI’s ChatGPT.
C3.a1 forecast a better-than-expected revenue and profit for both the fourth quarter and fiscal year 2023 after the AI software company posted third-quarter results that topped Wall Street estimates.
“The revenue was driven by execution of its consumption-based pricing model, which provides clients with greater flexibility and improved demand for its solutions,” analysts at Piper Sandler said.
Tailwinds from an improved business optimism are likely to boost growth, the analysts added.
Shares of C3.ai climbed 16.14% to $24.73 before the bell and were among the top five stocks trending on StockTwits.
Other major AI stocks with strong premarket moves included business support supplier Steelcase Inc (SCS.N), BigBear.ai (BBAI.N), conversation intelligence firm SoundHound AI (SOUN.O) and Thailand’s security firm Guardforce AI (GFAI.O), jumping between 5.4% and 12%.
AI firms have been at the forefront of retail buying ever since Microsoft Corp’s (MSFT.O) investment in OpenAI’s ChatGPT.
