There are many high quality AI stocks to buy. C3.ai is not one of them, and here's why

The AI tide has lifted all boats in 2023, and C3.ai ($AI), the self-proclaimed leader in enterprise AI, is one of these beneficiaries. Its stock has soared almost 180% this year amid the soaring popularity of AI. However, it's the AI hype that's mainly driving C3’s stellar performance this year.

C3’s most recent earnings results once again disappointed investors. The company not only missed revenue estimates, but also lowered its profit estimate for the next quarter. The stock tumbled post-earnings but has since recouped losses thanks to strong market performance.

Things could change in 2024. The stock might collapse if the AI hype fades and C3 fails to improve its weak fundamentals. Let’s see why.

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