Reuters
- Shares of C3.ai soared as much as 19% on Monday despite a down day for broader markets and no company-specific news.
- The artificial intelligence company has extended its year-to-date gain to 176%, adding $1.9 billion in market value.
- The surge higher in C3.ai comes after ChatGPT sparked a flood of investment demand for AI exposure.
C3.ai stock soared as much as 19% on Monday, extending its year-to-date rally to 176% as investor demand for artificial intelligence stocks continues to grow.
The surge has added $1.9 billion to C3.ai's market value, and the stock is up seven of the last nine trading days. Monday's rally in C3.ai came despite a decline in the broader market and no company-specific news. Other big rallies in smaller AI companies SoundHound AI and BigBear.ai suggested demand for these type of stocks is still strong.
Much of the move higher in C3.ai over the past month could be attributed to a sudden spark of investor interest for artificial intelligence stocks following the release of ChatGPT late last year. ChatGPT has reportedly become the fastest consumer product to reach 100 million users, and it recently rolled out a pro subscription for $20 per month.
ChatGPT has proven to be a useful showcase to both investors and consumers as to what artificial intelligence can do today, what it might be capable of over time, and how it can be monetized.
Last week, C3.ai said it would integrate ChatGPT into its product suite of artificial intelligence tools for enterprises.
ChatGPT is a natural language chatbot that allows users to have human-like conversations on a myriad of topics. Just two months after its release, users of ChatGPT are using the platform to assist with writing emails, developing code, and answering questions on a range of subjects, like investing.
C3.ai is attracting analyst coverage following its surge, with DA Davidson initiating coverage of the company with a "Buy" rating and a $30 price target on Friday. The research firm said C3.ai is a "truly scarce asset" and that it should have more opportunities to monetize its suite of AI-based software offerings.
The recent surge in C3.ai's stock price has helped it reach levels not seen since January 2022. Despite the year-to-date surge, C3.ai is still down 83% from its record December 2020 high of $183.90, currently trading at $27.31.