Why C3.ai Stock Fell 26% Last Month
Shares of C3.ai (NYSE: AI) fell 26.1% in August 2023, according to data from S&P Global Market Intelligence. First, a well-respected analyst suggested that the market has formed an artificial intelligence (AI) bubble that should pop soon. Later, a lukewarm investor response to AI-focused chip designer Nvidia's (NASDAQ: NVDA) stellar earnings report underscored the market's loss of AI enthusiasm.
The first event drove C3.ai's stock 13% lower in a three-day span. The second resulted in a single-day price drop of 12%.
Analysts at Morgan Stanley based their market bubble conclusion on technical analysis of Nvidia's recent stock chart, arguing that most historical bubbles of this magnitude would have popped already. If AI stocks continue to soar, investors will face an even sharper price correction when the steam engine runs out of digital coal.
Source Fool.com
