Published - March 06, 2023 @ 11:04 AM (EET)

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As AI continues to gain popularity on social media, shares of artificial intelligence-related stocks are trending higher in 2023. 

In trading on Friday, shares of C3.ai (NYSE:AI) jumped as much as 31.5% after the company reported financial results for its 2023 fiscal third quarter, which beat across the board. Currently shifting into a meme stock, C3.ai is an enterprise Ai software provider that builds enterprise-scale AI applications and accelerates digital transformation.

For the third quarter, total revenue fell from $69.8 million a year ago to $66.7 billion, while net loss increased from $39.4 million to $63.2 million, or $0.57 per share. However, after pulling out $55.8 in stock-based compensation, the loss per share was $0.06, beating the average analyst estimate for a loss per share of $0.22 on revenue of $64.22 million.

Subscription revenue came in at $57 million, slightly below the $57.1 million from the year-ago quarter. Sales fell 4.4% year-over-year.

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Looking ahead, management estimated revenue to be $70 million to $72 million in the fiscal fourth quarter. Moreover, the company said it remains on track to be cash positive and non-GAAP profitable by the end of fiscal 2024.

NOW WHAT

Analyst Dan Ives noted the company continues to see increased demand for its products and services across various industries. 

In an investor note, Ives, who has a neutral rating on C3.ai, wrote,

"the company is starting to gain momentum in building significant enterprise opportunities in its pipeline with its suite of innovative enterprise solutions, but there are still some bumps in the road for C3.ai, including the monetization strategy for its high-demand Generative Ai suite, which fundamentally changes the human interface for enterprise application."

Meanwhile, though the market might be jumping for joy from C3.ai's results and receiving widespread attention from some of the world's biggest tech companies, healthy skepticism could also be beneficial.

Last week, Apple (NASDAQ:AAPL) reportedly blocked an update to an email app using AI technology amid concerns about harmful content reaching young children.