Mid-cap artificial intelligence company c3.ai, Inc. AI reported better-than-expected fourth-quarter results and narrowed its full-year guidance, with the new range exceeding current consensus expectations. Tech analyst Daniel Ives of Wedbush believes c3.ai’s results further solidify the theory of an accelerating AI revolution.
Evidence of AI Growth: Ives cited Microsoft Corp.‘s MSFT strong performance, particularly the high demand for its Copilot AI tool, as early proof of the trend.
Ives, who has called Palantir Technologies, Inc. PLTR “The Messi of AI,” applauded its “homerun” with its commercial AI platform.
He referenced Nvidia Corp.‘s NVDA positive results, including both strong financials and optimistic forecasts, as further validation. “Last week, the Godfather of AI Jensen [Huang] spoke and the world listened,” Ives said of Nvidia’s CEO.
Finally, he highlighted C3.ai’s own surging demand as another testament to the growing market. “Now c3 seeing demand spike,” he said. “AI Revolution.”
See Also: Best Artificial Intelligence Stocks
Why It’s Important: AI-levered stocks have advanced solidly on the hype so much so that the Street has begun debating about potential “irrational exuberance.” Ives has maintained that the current AI optimism is reminiscent of the “1995 Moment” as the “AI Revolution and $1 trillion of incremental spending over the next decade is hitting the software ecosystem and rest of tech sector.”
Ives also said the current AI frenzy was nowhere near the 1999/2000 period. Back then during the 1999 Dotcom bubble burst, sky-high valuations, lack of monetization/ infrastructure, weak balance sheets, froth business models, and macro backdrop characterized the tech world, he said.
Deepwater Asset Management’s Gene Munster recently said we are only at the start of a three-to-five-year tech run, catalyzed by the AI revolution. Any bubble burst may happen only after that, he said.
The Technology Select Sector SPDR Fund XLK traded down 0.24% at $204.20 in premarket trading, according to Benzinga Pro data.
Read Next: No Imminent AI Bubble Burst, Says Munster: ‘We Are At The Start Of 3-5 Year Tech Run’
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