It’s no secret that artificial intelligence has been the top investment trend of the past year. And that it’s helped big-name tech companies soar higher. In turn, that’s helped the overall market recover sharply from the 2022 bear market.
With all of the focus on those big names, many smaller players in the AI space still look like a bargain now. They may have also had a great run this year, but their small market cap makes them better long-term growth plays.
One such AI name is C3.ai (AI). The AI application development company has inked a number of major deals to provide software services.
While they’re still not yet profitable, they’re trending that way, and the massive growth potential could lead to a surge in market cap.
C3.ai is up over 120 percent in the past year. But it’s still well off its 52-week highs, and with the market trending higher, it may make another big run in the months ahead. Plus, C3.ai has nearly 20 percent of its share price in cash, with almost no debt.
Action to take: Growth investors may like shares now, ahead of the company’s profitability and next big partnership announcement.
For traders, the April 2024 $40 calls, last going for $2.45, could see high double-digit gains or better on a continued rally in shares. Look to take profits early if shares see a big spike higher.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.