AI stocks surge after C3.ai's strong forecast

Steelcase

03/03/2023 12:21

March 3 (Reuters) - Shares of artificial
intelligence-based (AI) product makers zoomed in premarket
trade, as a strong forecast by retail investor darling  C3.ai
Inc  AI.N  amplified an ongoing euphoria driven by the launch of
OpenAI's ChatGPT.
    C3.a1 forecast a better-than-expected revenue and profit for
both the fourth quarter and fiscal year 2023, after the AI
software company posted third-quarter results that topped Wall
Street estimates.
    "The revenue was driven by execution of its
consumption-based pricing model, which provides clients with
greater flexibility and improved demand for its solutions,"
analysts at Piper Sandler said.
    Tailwinds from an improved business optimism are likely to
boost growth, the analysts added.
    Shares of C3.ai climbed 16.14% to $24.73 before the bell,
and were among the top five stocks trending on StockTwits.
    Other major AI stocks with strong premarket moves included
business support supplier Steelcase Inc  SCS.N , BigBear.ai
 BBAI.N , conversation intelligence firm SoundHound AI  SOUN.O 
and Thailand's security firm Guardforce AI  GFAI.O , jumping
between 5.4% and 12%.
    AI firms have been at the forefront of retail buying ever
since Microsoft Corp's  MSFT.O  investment in OpenAI's ChatGPT.

 (Reporting by Ankika Biswas in Bengaluru; editing by Uttaresh
Venkateshwaran)
 ((Ankika.Biswas@thomsonreuters.com;))