Riding the wave of the ever-growing artificial intelligence (AI) revolution, investors find themselves caught in a relentless pursuit of the next breakthrough stock poised to skyrocket in the market. As the AI craze gains formidable momentum, the quest intensifies to unearth the hidden gems before their share prices reach new heights.
In that regard, one stock witnessed a massive rally in May 2023, beating big players such as Nvidia (NASDAQ: NVDA), Google (NASDAQ: GOOGL), and AMD (NASDAQ: AMD), among others.
Shares of C3.ai (NYSE: AI), an AI company founded by US billionaire Thomas Siebel, surged by an impressive 125% in May. Over that period, the likes of NVDA, AMD, and GOOGL, climbed by 36%, 32%, and 14%, respectively.
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Stock price analysis
The startup’s stock fell 8.96% in the past 24 hours and more than 21% in premarket trading on June 1, after issuing softer-than-expected revenue guidance for its fiscal first quarter.
Over the past week, the AI firm saw its share price soar by more than 47%, and over 125.5% in the last month, lifting its market cap to $4.49 billion.
Year-to-date, shares of C3.ai rose by a jaw-dropping 250.04%.
Why did C3.ai stock soar in May?
With its substantial May and year-to-date gains, C3.ai is the hottest AI stock right now and one of the most wanted in the broader market.
There are several reasons driving the Redwood City, California-based company’s shares in 2023, including strong earnings, partnerships with some of the world’s biggest companies, and simply the broader AI market boom.
Several weeks ago, C3.ai hiked its revenue forecast for the fiscal Q4 2023, leading to a massive weekly surge of 33%. The company reported the results on May 31, beating the Wall Street expectations on top and bottom lines. However, the startup said it expects Q1 revenue in the range of $70 million to $72.5 million, missing the Wall Street estimates.
A day earlier, the company announced that Amazon Web Services (AWS) marketplace will start using its generative AI technology. The partnership attracted further investor attention, contributing to C3.ai’s recent stock gains.
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