10 AI News Investors Shouldn’t Miss

7. C3.ai, Inc. (NYSE:AI)

Number of Hedge Fund Holders: 17

C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company engaged in building and operating enterprise-scale AI applications. C3.ai was recently sinking following news that Chief Executive Office Thomas Siebel has warned about an AI bubble. He further noted how markets were over-evaluating the AI technologies, and that the market will correct at some point. On December 18, KeyBanc Capital Markets downgraded C3.ai Inc (NYSE:AI) to “Underweight” with a $29 price target. As per the analysts, the stock is trading at 13.3 times revenue and only growing between 10% and 20%, which has led to an “unfavorable” risk-reward.

There are also worries about estimates for fiscal 2026 and 2027 which are “too high,” as subscription revenue growth excluding upfront license has slowed to 1%. Some additional concerns that have led to the downgrade include C3.ai’s operating losses, uncertainty over the company’s partnership with oil-services firm Baker Hughes, and that the Microsoft (MSFT) “partnership does not yield material results”. C3.ai was also downgraded to “Underweight” by JP Morgan last week.

“While we understand that C3.ai is going after a massive and rapidly evolving opportunity around Artificial Intelligence, we think it’s uneven and subpar growth-plus-margin performance leaves a lot to be desired”.

-JP Morgan analyst