C3.ai (AI) expanded ties with amazon.com(AMZN) Amazon Web Services for various industries, including local government offices. AI shares rose 4% on Tuesday after the news.
x
C3 AI applications, such as C3 AI Law Enforcement, can be delivered through AWS services such as Amazon Comprehend. The two companies also reportedly have an agreement that allows C3.Ai to co-sell its applications with AWS.
According to Kimberly Honciano, Director of Technology Services for the San Mateo County Sheriff’s Office, the agreement “will not only eliminate data silos and improve case efficiencies, but it will also unlock business analytics in a way that has never been possible before.” It was not possible”.
AI shares soared earlier this month.
Users have successfully started using OpenAI’s AI application ChatGPT to generate responses, texts, emails, and even books. AI actions will benefit from apps like ChatGPT.
Although AI shares have risen, they are well below their all-time high of 183.90, which they hit in December 2020.
C3.ai provides enterprise AI, which comprises enterprise but not consumer applications. But the company will benefit from consumer applications like ChatGPT because the code can be integrated into the C3.ai platform.
The ChatGPT app reached 100 million monthly active users in two months, surpassing popular apps like Tik-Tok and Instagram. OpenAI’ project with Microsoft (MSFT), ChatGPT uses natural language to help users write emails, develop code, and find answers to everyday questions.
C3.ai creates AI-enabled software applications that can be configured for different purposes. Software can make networks more reliable, detecting fraud, balancing inventory and demand, solving supply chain problems, increasing energy efficiency, helping with anti-money laundering and customer interface.
C3.ai products are also valuable complements to enterprise CRM systems where automation can reduce costs and errors.
AI Stock Shows Sales Growth
The company has a decent track record of sales growth.
In the third quarter, sales rose 7% to $62.4 million, but the company still lost 11 cents per share. Recent IPOs carry a higher risk since they do not have a history of sales, unlike older companies. So while AI stock has had a nice run of sales growth for eight quarters since going public, it’s a riskier stock to hold.
AI shares appeared on the first day of public trading in December 2020, opening at 42 per share.
The stock rose from 11.19 at the end of 2022 to 30.92 earlier this month, up more than 150% in less than two months. He has a composite rating of 76, which falls below the desirable level of 90. The low 52 EPS rating clearly weighs on the composite rating. However, the Relative Strength Rating of 96 speaks for itself, highlighting outperformance compared to other stocks in the IBD database.
The stock also has a top-tier “B+” accumulation/distribution rating, despite mutual funds owning only 36% of the shares, according to IBD MarketSmith.
Investors looking for an entry should wait for a proper base that can establish a sustained rally.
AI Stock News
The general release of C3.ai Generative AI for Enterprise Search, a part of the C3.ai Generative AI Product Suite, will launch at the C3 Transform International User Group conference on March 7. The product will build on new AI tools and capabilities from leading platforms, including OpenAI, Google and others. The new iteration will be able to host ChatGPT and GPT-3.
The company previously secured a $90 million deal from the US Department of Health and Human Services for AI data collection, analytics, and predictive tools.
The generative artificial intelligence feature of C3.ai products holds promise for governments and businesses trying to create precise solutions to complex problems at lower costs.
But that promise requires a lot of upfront spending. At the same time, the size of the AI market is gigantic and growing. The value of the global artificial intelligence market is expected to reach $387.45 billion in 2022 and rise to $1.39 trillion in 2029, a great opportunity.
AI stocks have rallied with growing interest in generative artificial intelligence. Stock is one to watch as more companies outsource their automation needs for complex processes.
In accordance with CAN SLIM’s investment strategy, stocks with strong sales records and earnings growth that offer clear buy-in points from the bottom up are good choices. Clearly, AI stocks have a lot of work to do before offering a solid entry.
To find the best stocks take a look IBD Stock Lists and IBD data tables.
please follow vramakrishnan on Twitter for more AI stock news.
You may also like
The best AI stocks to buy and watch now
See breakout stocks and technical analysis
Get Free IBD Newsletters: Market Readiness | Technical report | how to invest
See daily market updates on IBD Live