C3.ai (NYSE:IA) the stock soared in Thursday’s trading. The company’s stock price was up 9.7% as of 2:30 p.m. ET. Meanwhile, the S&P500 the index was up about 0.5%.
C3.ai stock posts big gains on the heels of NvidiaYesterday’s third quarter report. Nvidia is the leading provider of graphics processing units (GPUs) that power artificial intelligence (AI) revolution, and its performance is often considered an indicator for the entire AI sector.
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After the market closed yesterday, Nvidia reported results for the third quarter of its 2025 fiscal year, which ended October 29. The AI leader reported sales and profits for the quarter that beat Wall Street’s expectations, and it also issued forward-looking guidance. better than expected.
Nvidia released non-GAAP (Adjusted) earnings per share of $0.81 on revenue of $35.08 billion, beating the average analyst estimate of adjusted earnings of $0.75 on revenue of $33.16 billion. The company’s revenue increased 94% year-over-year and adjusted earnings per share increased 103%. At the same time, the average analyst estimate was that the company would report adjusted earnings per share of $0.75 on revenue of $33.16 billion.
Nvidia expects revenue of around $37.5 billion for the current quarter. If the company achieved this goal, it would mean annual sales growth of around 70%. While the company’s sales growth is slowing, the overall demand outlook in the AI space is very strong. This bodes well for C3.ai and others, and investors are responding today by pushing up the company’s shares.
With its latest quarterly report, C3.ai’s revenue increased 21% year over year to $87.2 million. Meanwhile, the company reported an adjusted loss per share of $0.05. Sales growth actually appears poised to accelerate in the near term.
For the current quarter, the company expects sales between $88.6 million and $93.6 million, representing growth of approximately 24.5% at the midpoint. Meanwhile, full-year sales are expected to be between $370 million and $395 million. If the company hits the midpoint of this forecast range, it would mean sales growth of around 23%.
In addition to encouraging sales forecasts, C3.ai has also recently entered into some promising partnerships. The company recently announced that it has entered into a new partnership with Microsoft to accelerate the adoption of enterprise AI applications, and issued a press release yesterday detailing a partnership with Capgemini targeting AI solutions for industries including life sciences, energy, services public sector, government, banking and manufacturing.