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C3.ai (NYSE:AI) shares have jumped more than 15% after the stock was initiated with a Buy rating and $30 per share price target at D.A. Davidson on Friday, with analysts stating that the company is a “truly scarce asset.”
“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,” wrote the analysts.
They also argue that C3.ai’s generative AI product, introduced in March, is a game changer for the company, which is “well positioned to deploy generative AI solutions, the most impactful technology in years.”
“Although Microsoft’s set of opportunities may be bigger, C3.ai is a pure play, which means the benefit to shares of AI may be greater, even after the dramatic move higher this week,” claim the analysts.
“While Artificial Intelligence has been gradually introduced into a wide set of products and applications over the last few years (including by C3.ai), we see generative AI as the first true ‘killer app’ in AI, much like Office was to Window’s operating system.”
