C3.ai (NYSE: AI) was a fairly popular artificial intelligence (AI) stock back in 2023 when the AI investment wave began. The two letters in the company's name and ticker symbol prominently tell any investor or client what it specializes in. As a result of the AI investment wave, many people have piled into C3.ai's stock, although the popularity has waned (which is evidenced by its declining trade volume).

I think investors need to exercise some caution with C3.ai. There are three things I would be concerned about if I were an investor in the stock.

The most successful companies (and investments, for that matter) dominate their niche industry and then expand into other areas. Just look at giants like Apple, , and Amazon. These three started with something very specific, then added more products and offerings to eventually become what they are today.

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Source Fool.com