C3.ai Rises 12% in a Month: How Should Investors Play AI Stock?
C3.ai AI shares have returned 12.4% in the past month, outperforming the broader Zacks Computer and Technology sector’s appreciation of 4.6% and the Zacks Computers - IT Services industry’s return of 5.8%.
C3.ai has been one of the prominent AI stocks in recent times thanks to strong demand for C3 Generative AI solutions and an expanding partner base that includes the three big cloud providers Amazon AMZN, Alphabet GOOGL and Microsoft MSFT.
Expanding relationships with these cloud providers bode well for C3.ai’s prospects. In the first quarter of fiscal 2025, C3.ai closed 51 agreements through its partner network, up a whopping 155% year over year and 82% sequentially.
AI closed 71 agreements in the reported quarter including new agreements with GSK, Eletrobras, Valero, Swift, SmithRx, Sanofi, the U.S. Intelligence Community, the U.S. Department of Defense, Dolce & Gabbana, Ingersoll Rand, and others.
AI’s Rich Cloud Partner Base Boosts Prospects
AI has been taking initiatives to expand its relationship with these cloud partners. It has now achieved AWS Generative AI competency, further deepening its relationship with Amazon.
The Amazon Web Services (“AWS”) Competency Program helps customers by connecting them with AWS Partners like C3.ai, which possesses extensive knowledge and technical expertise in using AWS technologies and best practices to adopt generative AI (Gen AI).
The launch of C3 Generative AI for Government Programs, an advanced AI application that runs on Alphabet’s Google Cloud is noteworthy. The application is designed to help federal, state, and local governments efficiently deliver accurate information to the public about various government programs.
The latest solution is expected to strengthen AI’s footprint in the federal space. In the fiscal first quarter, the federal business accounted for more than 30% of AI’s bookings. C3.ai entered into new and expansion agreements with the United States Air Force, the U.S. Navy, the U.S. Marine Corps, and the U.S. Intelligence Community, among others in the reported quarter.