5 big names betting on AI stocks
Source: shutterstock.com/YAKOBCHUK V
What Are High Net Worth Investors Buying Today? As we will find out, some of them are taking share positions in the machine learning software specialist C3.ai (NYSE:AI). There is belief in the AI stock as it provides direct exposure to artificial intelligence (AI) a market with strong upside potential.
2023 could be remembered as the year machine learning was rocketed into mainstream consciousness. The popularity of Open AI The chatbot platform, ChatGPT, has put companies like C3.ai in the limelight this year.
Don’t get me wrong – just because some big companies are betting on C3.ai doesn’t mean you should necessarily follow suit. Still, if billions of dollars are flowing into C3.ai and machine learning in general, it’s worth studying this trend. In the end, you might even think of staking some of your own capital on C3.ai.
5 investors are betting big on AI stocks
You may not have billions of dollars to take a position on C3.ai. However, regulatory filings reveal that these companies are (or at least were) among C3.ai’s mega-shareholders.
- Avant-garde: A gigantic position of 9.14 million AI shares, which is equivalent to 8.41% of the outstanding shares.
- black rock (NYSE:BLACK): 5.45 million C3.ai shares, representing 5.01% of C3.ai shares outstanding.
- State Street (NYSE:STT): 1.66 million AI shares, or 1.53% of the outstanding shares.
- Citadel Advisors: A significant holding totaling 1.04 million C3.ai shares, or 0.96% of the outstanding shares.
- Goldman Sachs (NYSE:GS): a position consisting of approximately 826,000 shares, or 0.76% of the outstanding shares of C3.ai.
C3.ai is a strong contender in the growing AI market
What do these big financial companies see in C3.ai? Clearly, they are taking stock positions because they see a strong future for machine learning.
C3.ai is one of the most well-known and successful competitors in the AI industry. Impressively, the company raked in $66.7 million in revenue in the third quarter of fiscal 2023, surpassing C3.ai’s guidance range of $63-65 million.
Additionally, C3.ai CEO Thomas Siebel expects his business to “become cash positive and non-GAAP by the end of” fiscal 2024. That is not, however. not Siebel’s only prediction. The CEO also predicts that AI “will soon be a $600 billion addressable software market.” It’s easy to imagine that C3.ai will grow in tandem with this niche segment; after all, the company is “the biggest application player” in the field of generative AI, according to Siebel.
Consider AI Stock for an Accelerating Machine Learning Market
There is certainly no guarantee that the AI market will “soon” reach a value of $600 billion, as Siebel predicts. On the other hand, you might regret it if the C3.ai CEO’s predictions are accurate and you didn’t have enough exposure to the machine learning industry.
So, it makes sense to pick a high-trust AI company and consider a stock position today. Some financial whales are already investing billions of dollars in C3.ai, so feel free to take an appropriately sized stake in AI stocks for your own portfolio.
As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.
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