The C3.ai (NYSE: AI) stock price jumped by almost 10% in the pre-market after the strong financial results by Nvidia. The stock jumped to $30.3 on Thursday, which is about 80% above the lowest level in May, making it one of the best performers in the industry. Other AI stocks like Guardforce AI and AITX also jumped.
Why AI stock is soaring
The main reason why the C3.ai share price is soaring is the strong results by Nvidia. In a statement, the company said that its revenue jumped by more than 19% to $7.19 billion. Its data center revenue rose to $4.2 billion while gaming revenue jumped by 22% to $2.24 billion. Pro Visualization’s revenue soared to $295 million. Talking about AI, the company’s Colette Kress said:
“Generative AI drove significant upside in demand for our products, creating opportunities and broad-based global growth across our markets.”
C3.ai stock price jumped because of its association with artificial intelligence since the company provides these solutions to companies. Further, the shares jumped after the company expressed an optimistic outlook of the company.
C3.ai said that its revenue is doing much better than expected. In a statement, Thomas Siebek, the company’s CEO said that its revenue will be between $72.1 million and $72.4 million in the first quarter. That will be higher than the previous guidance of $71.1 million.
C3.i also believe that its net cash from activities will be between $28.1 million and $29.5 million while the free cash flow will be between $18M and $19.4M.
Still, there are concerns about the company’s valuation. At the current price, the company’s valuation stands at $3.1 billion, which is significantly high since the company is expected to break even in FY 2026.
C3.ai stock price forecast
Is it safe to buy C3.ai stock? The AI stock price has been in a strong bullish trend in the past few months as the artificial intelligence hype continues. The stock jumped to a high of $30.72 in the pre-market session. It has jumped above the 50-day and 100-day exponential moving averages (EMA) while the MACD has moved above the neutral point.
The stock is forming what looks like a triple-top pattern whose neckline is at $16.82. Therefore, more upside will be confirmed if the shares move above the upper side of the triple-top pattern. If this happens, the next key level to watch will be at $42.70, the lowest point in October 2021.
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