Sometimes enterprise artificial intelligence company C3.ai (NYSE:AI) is in favor on Wall Street; other times, C3.ai stock gets sold off. The sell-offs are great opportunities to buy shares on the cheap, as the bull case for C3.ai hasn’t changed.
Bear in mind, C3.ai serves both private-sector and public-sector clients. If the company can delivery AI-enhanced security to more public-sector clients, then C3.ai’s revenue should grow rapidly. So, don’t give up on C3.ai and don’t lose sight of your share-price targets in 2024.
C3.ai Focuses on Its Federal Business
In a recent development, C3.ai is teaming up with Paradyme for an enhanced partnership to deliver AI solutions for federal U.S. intelligence agencies. Paradyme is a technology-solutions company that will “accelerate” its “joint selling and delivery efforts” to the government in this collaboration.
Meanwhile, C3.ai will bring its public-sector-focused products to the table. These include the C3 AI Defense and Intelligence Suite as well as C3 Generative AI for Defense and C3 AI Law Enforcement.
Investors should be glad to see C3.ai making a concerted effort with Paradyme to ramp up its federal business. Paradyme could leverage its government connections, while C3.ai can provide the software solutions. Ultimately, this could be a win-win as federal contracts can be quite lucrative.
C3.ai and the Market’s Short Attention Span
It’s interesting how the market can quickly forget a company’s impressive progress. Short-term traders are always looking for the next shiny object, and C3.ai isn’t the shiny object right now.
I believe this explains why C3.ai stock fell below $24 recently. The market has a short attention span and has already forgotten about C3.ai’s consistent revenue growth.
Here’s the breakdown. In the first quarter of fiscal 2024, C3.ai grew its revenue 10.8% year over year (YOY) from $65.308 million to $72.362 million. Then, the company increased its revenue by 17% YOY to $73.2 million in the second quarter. After that, C3.ai expanded its revenue by 18% YOY to $78.4 million in fiscal 2024’s third quarter.
Also in the third quarter, C3.ai CEO Thomas Siebel reported that customer engagement grew 80% YOY. “Our significant first mover advantage in Enterprise AI is generating tailwinds as market interest in adopting AI accelerates,” Siebel commented.
It Will Be Nifty When C3.ai Stock Gets to $50
Hopefully, when C3.ai releases its next quarterly financial report, the market will remember how rapidly and consistently the company is growing its revenue. Until then, the market’s short attention span will cause some investors to overlook C3.ai.
This, I believe, presents a buying opportunity for forward-thinking investors. C3.ai’s team-up with Paradyme could provide enhanced revenue from government contracts.
With that in mind, I’m sticking with my bullish call for C3.ai stock. Now is a great time to buy C3.ai shares with a price target of $50 for 2024.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
