With AI ETFs inflow hitting a 6-month high, C3.ai stock forecast benefits from passive investment demand. Correlation to broader AI basket stocks suggests upward bias in the medium term. Valuation is key to KeyBanc's downgrade today. As Heath points out, even adjusted for cash on hand, C3 stock costs a staggering 13.3 times annual sales, or nearly twice the average valuation of its artificial intelligence peers (7.3 times sales). The size of the contract suggests that it can significantly boost C3.ai's top line over the next three to four years. Additionally, the adoption of C3.ai's generative AI solutions by other government agencies, especially its agentic AI offerings, also improved. According to CEO Thomas Siebel: C3.ai stock forecast trends mirror AI industry capital expenditure growth by enterprise clients. CEO guidance suggesting 35% client growth next year adds bullish long-run signals for investors.
