Investing in AI Stocks: Do They Really Deserve the ChatGPT Hype?

If you’ve read the news, you’ve most likely heard of ChatGPT. The newly released chatbot, based on artificial intelligence, machine learnings, and interactive human training, has made waves for its ability to engage in conversation, and for its mistakes along the way. The jury is still out on whether or not it’s a resounding success, but one thing is clear: it has kickstarted a conversation about the role of artificial intelligence (AI) in the world.

AI stocks have been in the public market for several years now, as the tech has made inroads into all sorts of niches – interactive chat bots, of course, but also autonomous vehicles, robotics, warehousing… even online content writing. There’s no doubt that AI is here to stay, nor any doubt that, long term, it’s going to bring some radical changes with it.

But for now, are AI stocks really worth all the hype that everyone is talking about?

Looking into the TipRanks data, and the commentaries from the Street’s analysts, it would seem for now that the answer is ‘No.’ The stocks don’t rate highly with Wall Street’s stock pros, who note that the tech is young, the success of its applications remains shaky, and the investments are still highly speculative.

With this in mind, let’s look under the hood of some AI stocks, check out their analyst ratings and their latest data readouts, and see if we can’t get a feel for where AI is headed.

C3.ai, Inc. (AI)

We’ll start with C3ai, an enterprise AI company integrating artificial intelligence into software applications. The company offers a family of products, including its C3 AI Application Platform, an end-to-end development and deployment platform, along with a portfolio of SaaS AI apps for digital transformation. C3ai’s apps and software have found use in customer engagement, fraud detection, predictive maintenance, and supply chain optimization.

Since going public just over two years ago, C3ai saw its share price drop sharply – not uncommon for firms working with highly speculative technology. In recent days, however, the stock has seen a sharp spike, and has nearly doubled in price since January 5. These strong gains came after the company released a new product suite, C3 Generate AI, a product based on natural language used to locate, retrieve, and present data from across a full range of information systems. In addition, C3 announced at the end of January that will be integrating ChatGPT into its…