Top 2 AI Stocks to Buy Now Before They Take Off

TLDR

Table of Contents

C3.ai stock is down 21% this year and 85% from all-time highs despite growing revenue 26% year-over-year
The company signed a $450 million contract ceiling with the U.S. Air Force, up from an initial $100 million ceiling
C3.ai reported record quarterly revenue of $389 million in fiscal 2025 but posted a net loss of $289 million
Marvell Technology reached record quarterly revenue of $1.9 billion, up 63% year-over-year, driven by data center demand
Both companies trade at lower valuations after recent stock price declines, with C3.ai at 9x price-to-sales and Marvell at 23x price-to-earnings

C3.ai continues to struggle with profitability despite revenue growth during the current AI boom. The enterprise AI software company reported revenue of $389 million for fiscal 2025, representing 26% year-over-year growth.

The company has secured major government contracts, including a $450 million contract ceiling with the U.S. Air Force Rapid Sustainment Office. This represents a substantial increase from the initial $100 million ceiling and demonstrates growing military adoption of AI technology.

C3.ai closed 51 agreements with the federal government over the past year. The company also completed 59 agreements through its cloud platform partners in the most recent quarter.

Partnership Strategy Drives Sales Growth

Microsoft has formed a strategic partnership with C3.ai that expands the company’s sales reach. The partnership allows C3.ai solutions to be available across all major cloud platforms and provides access to Microsoft’s global customer base.

Consulting firms like McKinsey are also deploying C3.ai tools to their clients. These partnerships leverage existing client relationships to expand C3.ai’s market presence.

The company reports deploying 4.8 million AI models for customers and processing 1.7 billion predictions daily. These metrics highlight the scale of C3.ai’s data analysis operations.

Profitability Challenges Persist

Despite revenue growth, C3.ai posted a net loss of $289 million in fiscal 2025. The company spent $240 million on sales and marketing and $226 million on product development, eliminating chances for positive cash flow.

The company’s losses have increased each year since going public. This contrasts with competitor Palantir Technologies, which achieved profitability while growing U.S. commercial revenue 71% year-over-year.

C3.ai stock trades at a price-to-sales multiple of 9, down from a range of 4 to 19 since late 2022. Analysts expect revenue to grow from $389 million in fiscal 2025 to $551.2 million by fiscal 2027.

Marvell Technology Capitalizes on Data Center Demand

Marvell Technology posted record quarterly revenue of $1.9 billion in fiscal Q1, representing 63% year-over-year growth. Data center revenue increased 76% year-over-year as demand for AI infrastructure accelerated.

The company benefits from custom chip solutions and networking products needed for AI data centers. Amazon Web Services recently acquired a stake in Marvell stock, strengthening their long-term partnership.

Marvell works with Nvidia’s NVLink Fusion platform to help data centers run AI workloads more efficiently. This integration expands Marvell’s data center opportunity in the growing AI infrastructure market.

Management updated its total addressable market estimate to $94 billion by 2028. This includes opportunities in custom chips, network switching, interconnects, and data storage.

Marvell stock declined from a 2025 high of $127 to current levels around $73. The stock trades at 23 times earnings and just over 10 times fiscal 2030 earnings estimates.

Analysts expect Marvell’s revenue to grow from $5.7 billion in fiscal 2025 to nearly $9.8 billion by fiscal 2027. The company’s market cap currently stands at $62 billion compared to C3.ai’s $4 billion valuation.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: