C3.ai (AI) is quickly becoming one of the hottest AI software stocks on the market.

For one, there’s no shortage of demand for its products. 

In fact, the company is making money by developing AI solutions and software for companies in several industries, including manufacturing, oil and gas, utilities, financial services, government, healthcare, retail, telecommunications, and transformation. Amazon and Alphabet, for example, partnered with C3.ai to boost cloud services. 

Two, it’s even solving what was once unsolvable for the U.S. military. For example, C3.ai was just awarded a $500 million contract with the Department of Defense (DoD) to help accelerate and strengthen its AI capabilities to counter current and future threats.

Three, C3.ai is seeing a good deal of interest thanks to AI chatbots released by companies like Open AI.  Four, analysts at DA Davidson just initiated a buy on the AI stock, with a $30 target, and referring to it as a “truly scarce asset.”

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“We believe that C3.ai is a truly scarce asset in a critical software arena and that the emergence of generative AI as a ‘killer app’ for Artificial Intelligence provides C3.ai with the opportunity to monetize its considerable investment and track record in the field of Artificial Intelligence,” said the analysts.

However, even with all of the bullish commentary, we’d wait to buy C3.ai.

That’s because the stock is technically overbought after running from $10 to $25.88 in days. Not only does it appear to be topping out for the immediate term, but RSI, MACD, and Williams’ %R are all deep in overbought territory.  We’d wait for a pullback to buy.


Ian Cooper