Will the AI-Infrastructure Boom Lift C3.ai's Application Demand?

C3.ai, Inc. AI finds itself at a pivotal moment as the broader AI-infrastructure boom gains traction across the enterprise landscape. While hyperscalers like Microsoft, AWS and Google build the foundation, C3.ai is focused on delivering turnkey AI applications that solve practical business problems, from predictive maintenance to fraud detection.

With over 130 AI applications deployed and more than 600 joint account efforts underway with Microsoft alone, C3.ai is counting on the infrastructure boom to fuel downstream demand for its software. In fiscal 2025, C3.ai posted 25% year-over-year revenue growth, bolstered by deepening partnerships and strong adoption across sectors like manufacturing, defense and life sciences.

A key enabler is its expanding partner ecosystem. In fourth-quarter fiscal 2025, 73% of bookings came through partners, with a 419% year-over-year surge in partner-supported deals. Investments in demo licenses and prioritized engineering services, together accounting for nearly overall revenues, are helping partners showcase C3.ai’s solutions effectively.

While the broader infrastructure buildout continues to attract headlines and capital, C3.ai’s thesis is that enterprise value accrues not at the hardware or model level, but where actionable AI is deployed. As enterprises seek production-ready solutions atop robust infrastructure, C3.ai’s differentiated platform could see a long-awaited lift.

Still, we believe unlocking this potential depends on C3.ai’s ability to consistently execute, accelerate deal conversions and drive deeper adoption of its applications. If the company delivers on these fronts, the AI infrastructure boom will not just boost data processing, it could be the catalyst that propels C3.ai into the next phase of meaningful top-line growth.

Competing at the Application Layer: How C3.ai Stacks Up Against Rivals

While C3.ai takes the position of a pioneer in turnkey enterprise AI applications, it is not alone in targeting the growing demand built atop AI infrastructure. Two noteworthy competitors are Palantir Technologies Inc. PLTR and Snowflake Inc. SNOW.

Palantir, long known for government analytics contracts, has made a decisive shift into commercial AI with its Artificial Intelligence Platform. Like C3.ai, Palantir focuses on real-world use cases, particularly in manufacturing, logistics and defense. It also benefits from early mover advantage and deep client relationships in sensitive, high-barrier sectors.

Snowflake, though rooted in cloud data warehousing, is evolving toward a full AI-data platform. Its acquisition of AI startups and rollout of Snowflake Cortex shows a pivot to infuse AI natively into enterprise workflows. While not a pure-play application provider, Snowflake’s tight integration with cloud infrastructure and data pipelines positions it as a formidable challenger.

AI’s Price Performance, Valuation and Estimates

AI’s shares have gained 8% in the past three months compared with the industry’s growth of 5%.

Price Performance

Despite the recent gain, AI is priced at a discount relative to its industry. It has a forward 12-month price-to-sales ratio of 6.7, which is well below the industry average.

P/S (F12M)

The Zacks Consensus Estimate for fiscal 2026 loss per share has narrowed to 37 cents (compared with a loss of 47 cents a year ago) in the past 30 days. Moreover, the consensus mark for fiscal 2027 loss per share has narrowed to 16 cents from a loss of 45 cents in the same time frame. 
 

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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