1 Magnificent Artificial Intelligence (AI) Stock Down 84% You Might Regret Not Buying on the Dip in 2025

Core Insights - C3.ai, founded in 2009, provides ready-made AI applications for businesses lacking the resources to develop AI from scratch [1] - The company went public in 2020, reaching a peak stock price of $161, but has since declined by approximately 84%, making it potentially attractive for investors [2] Product Offerings - C3.ai offers over 130 customizable AI applications across 19 industries, including financial services, retail, manufacturing, healthcare, and oil and gas, with a delivery timeline of six months [4] - The C3.ai Anti-Money Laundering application enhances detection rates by 200% and reduces false positives by 85%, while the Smart Lending tool speeds up loan approvals [5] - The company also provides an agentic AI platform for businesses to create virtual assistants, which connects to over 200 third-party applications, potentially driving a global productivity boom [6] Market Presence - C3.ai's products are accessible through major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud, allowing businesses to scale without maintaining their own infrastructure [7] - In fiscal year 2025, C3.ai secured 264 new customer agreements, marking a 38% increase from the previous year [8] Financial Performance - C3.ai achieved a record revenue of $389.1 million in fiscal 2025, a 25% increase year-over-year, indicating strong growth momentum [9] - Management projects revenue could reach $484.5 million in fiscal 2026, representing another 25% increase [10] - Despite revenue growth, C3.ai reported a net loss of $288.7 million in fiscal 2025, with operating costs rising [11] - On a non-GAAP basis, the company lost $52.3 million, but maintains a solid balance sheet with $742 million in cash and equivalents [12] Valuation and Investment Potential - The stock's price-to-sales (P/S) ratio has decreased to 8.3 from over 75 at its peak, suggesting a more reasonable valuation [13] - This P/S ratio is 13% lower than its three-year average of 9.6, indicating potential for growth as the enterprise AI market is projected to be a $1.3 trillion opportunity by 2032 [15] - If C3.ai captures even a small portion of its addressable market, it could experience significant long-term growth, making its stock a potential addition to a diversified portfolio [16]