C3.ai is growing rapidly and could be the next Palantir in 2025.

From Nasdaq: 2025-01-06 06:30:00

In 2024, Palantir Technologies saw its shares soar by about 350%, making it the No. 1 gainer among stocks in the S&P 500. Could C3.ai be the next Palantir in 2025? C3.ai has been growing its revenue at a rapid pace, nearly tripling its growth rate in just over a year.

C3.ai has strategic partnerships with big tech firms like Microsoft, Amazon, and Alphabet, as well as consulting agencies like Booz Allen Hamilton and Capgemini. These partnerships have helped the company broaden its end markets, with nearly half of new bookings coming from aerospace and defense contractors.

Despite its strong performance, C3.ai’s stock valuation remains compelling compared to its peers like Palantir. While Palantir generates positive net income, C3.ai is still a cash-burning operation. However, C3.ai’s revenue growth rate is now on par with Palantir’s, showing potential for future growth.

Investors may see upside in C3.ai stock in the near term, but it remains somewhat speculative. While the company’s revenue is accelerating and net losses are shrinking, consistent profits may still be a couple of years away. Investors with a higher risk tolerance and a long-term outlook may consider a small position in C3.ai.



Read more at Nasdaq: Will C3.ai Be the Palantir of 2025?