Machine learning software specialist C3.ai (NYSE:AI) has been red-hot lately. AI stock skyrocketed recently, but it’s not too late to take a position for the long term. The release of a new artificial intelligence ( ) software suite puts C3.ai at the forefront of a fast-growing market, and investors should prepare for sizable gains over the next several years.
Coders and other tech wizards have been talking about machine learning for years. Yet, suddenly, AI is in the headlines due to the popularity of OpenAI’s ChatGPT program.
OpenAI isn’t listed on a major U.S. stock exchange, but C3.ai is. Indeed, it’s not too late to buy a stake in C3.ai as a history-making agreement between nations indicates a runway for multi-year growth in the global AI market.
Cathie Wood, White House and E.U. Support AI
Will the machine learning market continue to expand in the coming years? There are a number of reasons to believe so. For one thing, Ark Invest’s Cathie Wood is clearly bullish on the future of AI.
“AI is going to enable the most massive productivity increase in our history,” Wood declared recently. “The productivity gains are going to be astounding and shocking,” she added.
In that vein, a report from Ark Invest has some eye-opening projections. “AI should increase the productivity of knowledge workers more than 4-fold by 2030,” the report estimates. Moreover, “At 100% adoption, AI could increase global labor productivity ~$200 trillion, dwarfing the ~$32 trillion in total knowledge worker salaries.”
Along with all of that, prospective investors should know that, on Jan. 27, the White House announced an agreement between the United States and European Union. Under this agreement, “experts from across the U.S. and Europe” will collaborate “to further research” on AI, “computing, and related privacy protecting technologies.”
New Product Suite Bodes Well for AI Stock
In case you’re not convinced to give AI stock a try, here’s a potentially game-changing development to consider. Just recently, C3.ai announced it will launch a product suite that will provide enterprise users with a “transformative,” AI-enhanced user experience.
It’s called the C3 Generative AI Product Suite, and the first product from this lineup is C3 Generative AI for Enterprise Search. This will integrate “the latest AI capabilities from organizations such as Open AI,” including the “the most advanced models, such as ChatGPT.”
Thus, rather than try to compete with OpenAI’s ChatGPT, the C3 Generative AI Product Suite can incorporate and deploy it. All in all, it’s a wide-ranging array of enterprise AI tools that uses a “language interface to rapidly locate, retrieve, and present all relevant data across the entire corpus of an enterprise’s information systems.”
So, Here’s My AI Stock Price Prediction for 2025
We’ve addressed multiple reasons to be bullish on C3.ai. The company’s shares have gained value over the past few weeks. However, there’s still much more room to run.
The next few years will be an exciting time for the machine learning industry. C3.ai should benefit from the aforementioned, multinational agreement to support AI. Plus, Wood’s optimism indicates that AI has a robust future, and this bodes well for C3.ai.
Therefore, I fully expect AI stock to rally to $100 by 2025. This might actually be a conservative estimate, but it nonetheless represents multi-bagger potential gains. And, if C3.ai continues to innovate with leading-edge products, the company’s shareholders will have a big winner on their hands.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.