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1 No-Brainer Artificial Intelligence (AI) Stock to Buy With $25 and Hold for the Long Run
AIC3.ai(AI) The Motley Fool·2025-04-17 08:19

Core Insights - C3.ai is positioned to capitalize on a 1.3trillionmarketopportunityby2032,withasurgeindemandforitsAIapplicationsacrossvariousindustries[2][16]−Thecompanyhasshiftedtoaconsumption−basedbillingmodel,leadingtosignificantrevenuegrowthandcustomeracquisitionwithoutaproportionalincreaseinlosses[9][10][11]Group1:CompanyOverview−C3.aihasdevelopedover130customizableAIapplicationsfor19industries,makingitapioneerinenterpriseAIsinceitsfoundingin2009[2]−ThecompanycandeliverAIapplicationswithinsixmonths,targetingsectorslikemanufacturing,healthcare,financialservices,andoilandgas[4]−C3.ai′sapplicationsarecompatiblewithmajorcloudplatforms,facilitatingeasyaccessforbusinesses[5]Group2:FinancialPerformance−C3.aireportedarecordrevenueof1.3 trillion market opportunity by 2032, with a surge in demand for its AI applications across various industries [2][16] - The company has shifted to a consumption-based billing model, leading to significant revenue growth and customer acquisition without a proportional increase in losses [9][10][11] Group 1: Company Overview - C3.ai has developed over 130 customizable AI applications for 19 industries, making it a pioneer in enterprise AI since its founding in 2009 [2] - The company can deliver AI applications within six months, targeting sectors like manufacturing, healthcare, financial services, and oil and gas [4] - C3.ai's applications are compatible with major cloud platforms, facilitating easy access for businesses [5] Group 2: Financial Performance - C3.ai reported a record revenue of 98.7 million in Q3 of fiscal 2025, reflecting a year-over-year growth of 26% [8] - The company closed 66 new deals in Q3, a 72% increase from the previous year, indicating strong demand for AI software [7] - Operating expenses increased by 11.3% to 403.8million,butrevenuegrowthoutpacedthis,resultinginanetlossincreaseofonly1403.8 million, but revenue growth outpaced this, resulting in a net loss increase of only 1% to 209 million [10][12] Group 3: Stock Valuation - C3.ai's stock has declined by 42% in 2025 and is down 87% from its all-time high in 2020, making it an attractive entry point for investors [3][13] - The price-to-sales (P/S) ratio has decreased to 6.9, which is a 28% discount to its three-year average of 9.6, suggesting a favorable valuation [14]