Cathie Wood sees software as major AI opportunity, C3.ai potential value opportunity.

From Nasdaq: 2025-03-02 04:27:00

Cathie Wood of Ark Investment Management sees software companies as a major opportunity in AI, predicting $8 in revenue for every $1 spent on chips. Ark’s ETFs reflect this view with holdings in Tesla, Palantir, and Amazon, while investing in AI software start-ups like OpenAI and Anthropic.

C3.ai (NYSE: AI) could benefit from Wood’s prediction as it aids businesses in various industries with AI software applications. The company has over 130 ready-made AI applications used in industries such as oil, manufacturing, and finance, partnering with cloud providers like AWS, Azure, and Google Cloud for scalability and security.

During C3.ai’s fiscal 2025 Q3, it closed 47 new agreements, a 74% increase from the previous year. The company generated a record $98.7 million in revenue for the quarter, driven by a shift to consumption-based pricing. However, its GAAP net loss increased by 10% year over year, reaching $80.2 million.

C3.ai’s stock, while previously overvalued, has seen a significant decline, making it a potential value opportunity. With AI adoption increasing across industries, C3.ai, according to CEO Thomas Siebel, could tap into a $1.3 trillion market by 2032. Despite recent losses, the company’s strong revenue growth and partnerships position it for long-term success.

Considering the potential growth of C3.ai and the broader AI industry, investors may want to explore investment opportunities. The Motley Fool Stock Advisor team highlights the 10 best stocks to buy now, offering insights on high-growth potential stocks. Past recommendations from the team have yielded significant returns, making it a resource for long-term investment strategies.



Read more at Nasdaq: Cathie Wood Says Software Is the Next Big AI Opportunity — 1 Super Stock You’ll Want to Buy If She’s Right