10 Best Artificial Intelligence Stocks Under $50 According to Hedge Funds

3. C3.ai Inc. (NYSE:AI)

Number of Hedge Fund Holders: 18

C3.ai Inc. (NYSE:AI) specializes in enterprise AI. It can be thought of as a company that builds toolkits to help businesses solve real-world problems by integrating AI into their operations. The company helps address problems like fraud detection in finance, predictive maintenance in manufacturing, and supply chain optimization.

In FQ4 2024, C3.ai Inc. (NYSE:AI) recorded $86.59 million in revenue, exhibiting a 19.58% year-over-year rise. The loss per share was $0.11, which was $0.19 lower than analysts’ estimates. The company expects revenue growth of 23% in fiscal year 2025.

C3.ai Inc. (NYSE:AI) has seen strong interest in its GenAI products, with over 50,000 inquiries in Q4. These products are deployed across 15 industries and offer features like safe, secure, and reliable information retrieval, deterministic responses, robust enterprise controls, and minimal hallucination risk.

It has supercharged its community with C3 GenAI co-pilot, increasing developer productivity. There is increased customer usage across different companies. Cargill expanded its use to 18 plants, Baker Hughes deployed it across 855 sites, and Petronas, and Dow also use it to enhance predictive maintenance and reduce downtime.

It has a first-mover advantage in the enterprise AI market and serves 90 such applications. Like some analysts, C3.ai Inc. (NYSE:AI) also believes that AI value will shift from hardware to software over time, and plans to benefit from this long-term structural change. With a clear moat in its industry and market share-winning executions, C3.ai is one of the best AI stocks to buy now according to hedge funds.

As of June 30, the stock is held by 18 hedge funds. The largest shareholder was Citadel Investment Group, with a position worth $85,964,864.

Bireme Capital stated the following regarding C3.ai, Inc. (NYSE:AI) in its fourth quarter 2023 investor letter:

“Our final new short position is in a company called C3.ai, Inc. (NYSE:AI). Originally named “C3 Energy,” C3.ai has changed its name multiple times based on whatever hot new trend they were supposedly capitalizing on. The “energy” theme was about smart grid and cap-and-trade. Then the firm changed its name to “C3 IoT” to attempt to capitalize on the Internet of Things buzz. After that trend fizzled out, the moniker was altered once more, with the company capturing the “AI” ticker in December 2020 – a savvy move if it wants to sell stock to credulous investors, but irrelevant to its business prospects. As Kerrisdale put it, the company is a “minor, cash burning consulting and services business masquerading as a software company.”