C3.ai, Inc
.
AI
is riding on an expanding user base. C3.ai’s customer count increased to 104 at the end of second-quarter fiscal 2022, up 63% year over year.
C3.ai expanded its enterprise AI footprint in industries such as Agriculture, Manufacturing, Life Sciences, Oil and Gas, Chemicals, Insurance and many others.
C3.ai is expanding its footprint in the defense sector. The company recently entered into a new five-year Production-Other Transaction Agreement with the U.S Department of Defense (DoD).
The agreement provides the DoD with an accelerated timeline to acquire C3.ai’s suite of Enterprise AI products. It also allows any DoD agency to acquire and access C3.ai solutions and services for the purpose of modeling and simulation.
It is crucial to improve the DoD’s enterprise AI capabilities to develop and deploy systems to counter the increasingly capable threats. This is where C3.ai’s software and solutions come into play. C3.ai’s software enables the DoD to quickly address additional use cases and scale AI applications across all branches of U.S. DoD.
The agreement is anticipated to accelerate the adoption of C3.ai’s defense and intelligence solutions and C3.AI Suite at the U.S. DoD. The solutions are already in use at the U.S. Air Force, Space Command, F35, JPO, RSO, DISA and others.
C3.ai’s defense and intelligence application offerings include insider threat, security clearance adjudication, readiness, missile trajectory modeling, and data fusion, AI predictive maintenance, modeling and simulation.
Expanding Partner Base Drives Future Prospects
Strategic partnerships have been a key catalyst for C3.ai’s prospects.
C3.ai expanded and restructured its strategic partnership with Baker Hughes for the second time, raising the contract value by $45 million to $495 million. The terms of the agreement have been extended from five years to six years.
C3.ai and Baker Hughes collaborated with Malaysia-based global energy and solutions company, Petronas. The collaboration allowed Petronas to apply joint Baker Hughes-C3.ai (BHC3) technology across its strategic digital transformation platforms.
C3.ai also partnered with Google Cloud, a division of
Alphabet
GOOGL
, to help organizations across multiple industries to hasten the adoption and application of AI solutions. Under this agreement, the companies’ global sales team will co-sell C3.ai’s enterprise AI applications, running on Google Cloud.
The entire portfolio of C3.ai’s Enterprise AI applications, which includes industry-specific AI Applications, C3 AI CRM, C3 AI Suite and C3 AI Ex Machina, are currently available on Alphabet-owned Google Cloud’s infrastructure.
C3.ai’s enterprise solutions are built on the common foundation of Alphabet’s Google Cloud infrastructure, AI, ML and data analytics capabilities. This will ensure that the company’s applications can complement and interoperate with Google Cloud’s product portfolio of industry solutions.
The company renewed its five-year strategic agreement with Shell to accelerate the deployment of enterprise AI and ML applications across Shell. The main objective of the agreement is to address asset integrity, reliability and process optimization across Shell’s business.
In second-quarter fiscal 2022, C3.ai’s revenue reached $58.3 million, up 41% year over year from $41.3 million in the year-ago reported quarter. Subscription revenues in the quarter increased 32% year on year to $47.4 million.
Zacks Rank & Stocks to Consider
C3.ai currently holds a Zacks Rank #3 (Hold).
Some other top-ranked stocks in the broader technology sector are
Advanced Micro Devices
AMD
and
Pinterest
PINS
, both carrying a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
The long-term earnings growth rate for AMD is currently pegged at 46.2%.
AMD has surged 58.4% year to date compared with the
Electronics-Semiconductors
industry’s growth of 44.1% and the Computer & Technology sector’s return of 29%.
Pinterest has a long-term earnings growth rate of 52.7%.
PINS has plunged 43.5% compared with the Zacks
Internet Software
industry’s decline of 20.1% and the Computer & Technology sector’s return of 29.1% year to date.
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