C3.ai, Inc. (NYSE:AI) is among the 10 AI stocks making waves on Wall Street. BofA Securities analyst Brad Sills lowered the price target on the stock to $10.00 from $14.00, citing weak growth visibility and limited upside until a clearer growth path emerges.

BofA expresses concerns about C3.ai’s ability to maintain competitive differentiation in the crowded AI applications market. The firm believes time will tell if C3.ai can become a significant share gainer in the AI space, but sees challenges ahead.

BofA remains bearish on C3.ai (AI), citing negative revenue growth and free cash flow profile. The firm believes the company’s value proposition must become more defensible for its shares to outperform peers in the infrastructure software sector.

The $10 price target is based on 2.7x EV/FY26E revenue, reflecting a discount to peers at 5.7x. BofA revised its estimates to reflect updated views on growth potential, risks, and peer multiple compression.

C3.ai, Inc. (NYSE:AI) is an enterprise AI software company focused on building and operating enterprise-scale AI applications. The company is involved in accelerating digital transformation through AI technology.

While acknowledging AI’s investment potential, BofA believes certain AI stocks offer more upside potential with less downside risk. For those seeking an undervalued AI stock benefiting from tariffs and onshoring trends, check out their free report on the best short-term AI stock.

Read more at Yahoo Finance: BofA Stays Bearish on C3.ai (AI), Sees Limited Upside Amid Rising AI Competition