AI-Based Product Manufacturers Stocks Soar, Supported By Projections From C3.ai And Launch ChatGPT

C3.ai expects better revenue and profit from AI. (photo: twitter @C3_AI)

JAKARTA - Shares of a product developer based on artificial intelligence (AI) jumped on Friday, March 3 after a strong forecast from C3.ai Inc. which became a retail idol added to the ongoing excitement in the segment driven by OpenAI's ChatGPT launch.

C3.ai expects better revenue and profit than expected for the fourth quarter and fiscal year 2023, after its third quarter result surpassed Wall Street forecasts.

Shares of this AI software provider rose 16% to USD 24.80, and became one of the five most popular stocks on StockTwits. If this increase persists, these shares are set to record their strongest one-day rise in a month.

"The company is starting to gain momentum in building significant corporate opportunities in its pipeline with a series of innovative company AI solutions," said Wedbush analyst Daniel Ives.

The company's goal of making positive cash and generating adjusted profits by the end of fiscal year 2024 also raised stocks, but Ives believes that the implementation of this ambition is critical to gaining market confidence towards 2023.

Retail investors have flocked to small companies that build AI tools as companies such as Alphabet Inc's Google-partials and Microsoft Corp have also competed to make AI the next major growth driver.

Microsoft's investment in OpenAI's ChatGPT increases the popularity of AI companies further. Chatbots like ChatGPT are software apps aimed at emulating human conversations using artificial intelligence.

Other large AI stocks also jumped last Friday with BigBear.ai, voiceHund AI conversation intelligence firm, and Thai security firm Guardforce AI jumped between 5% and 20%.

So far this year, these stocks, including C3.ai, have jumped 33.9%-321.6%, at the close of the previous day.

"AI could be a new gold fever on Wall Street," said Adam Sarhan, chief executive officer of 50 Park Investments in Florida. "But it still takes more time to mature a little, take a better price action, and prove that it can generate profits for investors."