The artificial intelligence (AI) boom has captured the spotlight recently, with investors searching for the next big opportunity in this rapidly growing sector.
Palantir Technologies (NYSE: PLTR) stood out in 2024, with an impressive 370% surge to become the top-performing stock in the S&P 500.
Its record-breaking rise has set a new benchmark for the industry, turning attention to other AI players showing strong potential.
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C3.ai (NYSE: AI), an enterprise AI pioneer, has gained momentum in recent quarters, driven by its strategic partnerships, and growth in key sectors.
Positioned as a key player in the AI space, C3.ai is increasingly being compared to Palantir as it navigates its path in a sector projected to reach $40.83 billion by 2030.
Bullish technical momentum suggests upside for C3.ai stock
C3.ai’s stock performance has caught attention, with analysts noting significant bullish potential.
Notably, an analysis by TradingShot highlighted that the stock recently broke out of a 1.5-year downward channel, successfully hitting a $28.50 target in September 2024.
Currently trading at $33.30, the stock now appears to be forming a Channel Up pattern that often signals sustained bullish trends.
By February 2025, C3.ai is projected to achieve a ‘Golden Cross’ on its weekly chart, a key signal that could ignite further buying interest.
The next key resistance lies in the consolidation zone from 2021, which also coincides with the June 2023 highs at $45.
If C3.ai surpasses this level and the 50-week moving average holds as support, the stock could make a strong push toward its all-time high, mirroring the breakout Palantir experienced in 2024.
A near-term target of $130 is within reach if momentum holds steady, further strengthening the growing appeal to investors.
Key partnerships drive growth
C3.ai’s partnerships with leading industry players provide a solid foundation for expansion.
Collaborations with cloud hyperscalers like Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL), as well as consulting firms such as Baker Hughes and Capgemini, have enabled the company to secure over 60% of its deals through its partner ecosystem in fiscal 2025.
Moreover, the company signed a new global alliance agreement with Microsoft on September 30 for an initial five-and-a-half-year term ending March 2030 to further accelerate growth in enterprise AI.
This partnership integrates C3.ai’s solutions into Azure’s price list, with Microsoft’s global salesforce incentivized to sell these products. This agreement provides C3.ai with access to Microsoft’s extensive enterprise client base, significantly shortening its sales cycles.
Generative AI: The catalyst for long-term growth
C3.ai has made significant advancements in generative AI, which is anticipated to see widespread adoption in the coming years.
In the second quarter, the company launched 15 generative AI pilots with high-profile partners such as Boston Scientific, Rolls-Royce, the U.S. Navy, the National Science Foundation, and various government agencies across Texas, Washington, and New Mexico.
Several of these pilots transitioned into full-scale production agreements with clients including Dow, Flint Hills Resources, Cargill, Norfolk Iron & Metal, and Florida Crystals.
While generative AI adoption remains in its early stages, its potential is enormous.
Gartner projects that by 2028, 33% of enterprise AI applications will feature agentic AI capabilities. C3.ai is well-positioned to leverage this trend, further supported by a foundational U.S. patent it secured during the second quarter for generative AI agents, strengthening its competitive edge.
Is C3.ai the next Palantir?
While Palantir has set a high benchmark with its 2024 performance, C3.ai is carving out its own path in enterprise AI.
Both companies share strengths in enterprise AI, government contracts, and partnerships with industry leaders.
However, C3.ai’s success will depend on its ability to scale operations, maintain technological leadership, and execute on its long-term growth strategy.
While it’s too early to label C3.ai as the next Palantir, the company’s solid foundation, driven by strategic partnerships, generative AI advancements, and a growing presence in key industries, positions it as a strong contender in the AI sector.
For investors with a higher risk tolerance, C3.ai offers an opportunity with its growth trajectory pointing to significant potential.
Featured image via Shutterstock
