C3.ai (NYSE: AI) Stocks rose in Friday’s trade. The company’s stock price was up 9.7% at 2:30 pm ET. Meanwhile, the S&P 500 the index rose by about 0.5%.
Stock C3.ai saw big gains on the heels of Nvidiathird quarter report yesterday. Nvidia is the leading provider of graphics processing units (GPUs) that are powering the artificial intelligence (AI) revolution, and its performance is often seen as a bellwether for the broader AI industry.
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After the market closed yesterday, Nvidia published results for the third quarter of the fiscal year 2025, which ended on October 29. in more than anticipated.
Nvidia posted non-GAAP (adjusted) earnings per share of $0.81 on sales of $35.08 billion, topping the average analyst estimate call for adjusted earnings of $0.75 on sales of $33.16 billion. The company’s revenue rose 94% year over year, and adjusted earnings per share rose 103%. Meanwhile, average analyst estimates were calling for the business to report adjusted earnings per share of $0.75 on revenue of $33.16 billion.
Nvidia expects revenue of about $37.5 billion for the current quarter. If the business reaches this target, it means that it will generate an annual sales growth of approximately 70%. While the company’s sales growth is slowing, the overall demand outlook for the AI ​​space is very strong. That’s good for C3.ai and other players, and investors are responding by bidding on the company’s stock today.
With its last quarterly report, C3.ai’s revenue increased 21% year over year to $87.2 million. Meanwhile, the business posted a loss per share of $0.05. Sales growth actually looks poised to accelerate in the near term.
For the current quarter, the company is guiding sales to be between $88.6 million and $93.6 million — good for growth of roughly 24.5% at the midpoint. Meanwhile, full-year sales are expected to be between $370 million and $395 million. If the business will reach the midpoint of these guidelines, it means that it will generate sales growth of approximately 23%.
Along with some encouraging sales leads, C3.ai has also scored some promising partnerships recently. The company recently announced that it has formed a new partnership with Microsoft to accelerate the adoption of enterprise AI applications, and issued a press release yesterday detailing a partnership with Capgemini targeting AI solutions for industries including life sciences, energy, utilities, government, banking, and manufacturing.
