The artificial intelligence (AI) hype train sent C3.ai's (NYSE: AI) stock price flying in 2023, as shares of the pure-play enterprise AI software provider more than tripled so far this year. However, August turned out to be a terrible month for C3.ai investors so far thanks to analysts from investment banking firm Morgan Stanley, who recently suggested that AI is a bubble that is close to popping.

That concern goes some way to explaining why C3.ai stock is down 21% this month. The drop is not all that surprising considering the stock's surge in 2023 has mostly been driven by the growing interest in AI applications instead of enthusiasm for the company's financial performance, which has left a lot to be desired over the past year.

Should C3.ai investors consider booking their profits with Wall Street expecting the stock to struggle? Or should they continue holding this AI play in their portfolios in anticipation of more long-term gains? Let's see if an answer presents itself.

Continue reading

Source Fool.com