Is C3.ai a Top AI Stock to Buy?
As artificial intelligence (AI) investing moves into the mainstream, one of the first stocks that comes up is C3.ai (NYSE: AI), primarily because it has AI right in its name. But is it one of the top ways to invest in the AI revolution? Or are there better ways to gain exposure to this space? Let's find out.
C3.ai has enterprise AI solutions that include plug-and-play energy management, inventory optimization, and anti-money-laundering programs. These programs can fit into different business software suites, like customer relationship management (CRM) or enterprise resource planning (ERP), and help its clients become more efficient.
While C3.ai has products for multiple industries, they are surprisingly concentrated in one industry: oil and gas. In the third quarter of fiscal 2023, ended Jan. 31, 72% of bookings came from this sector, with the second-largest contributor coming from the federal, aerospace, and defense segment with 16%. This concentration comes from its relationship with Baker Hughes, an oil field servicing company owned by General Electric. However, this could also be considered a risk if Baker Hughes terminated the partnership.
Source Fool.com
