It’s Frenzies and Falls for AI Stock Earnings Including C3 and Palantir

Key takeaways

• AI stock frenzy has gotten bears and bulls interested as Nvidia surge carried dozens of companies with it
• Palantir has seen a near 10% lift this week as it was swept up in the frenzy
• Meanwhile C3 plunged as much as 19% as it reported weaker-than-expected earnings guidance

Since Nvidia has put its stake in the ground with AI and reaped the rewards by becoming the first-ever chip company to hit a trillion-dollar valuation, other AI companies have been jostling for position in the hierarchy. Two pertinent examples are C3 and Palantir, which have seen massive highs and lows this week. Here’s the lowdown.

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The sun is shining on Palantir

AI company Palantir Technologies, founded by controversial investor Peter Thiel, has seen major gains this month, soaring 95% overall. The stock rose 9.7% on Tuesday as part of the AI frenzy from Nvidia’s insanely good earnings beat, which saw the semiconductor chip company’s stock rise 24% in a day and lift others with it.

Palantir has seen some bearish sentiment in the last few days, with one investor calling the company an “AI imposter” and an “overhyped data consultant”. But Palantir has seen a meteoric rise, climbing 132% in 2023 and 94% in the last month alone.

The stock may have further to climb with the company’s AIPCon, where it intends to share more details about its new AI platform. We could well see another Palantir rally before the week is out.

Meanwhile, C3 flounders

While C3 was swept up in the last few days’ AI stock madness, the AI company has had a swift return to reality today. C3 was down as much as 19% before trading today thanks to its full-year outlook which missed analyst expectations.

The company predicts by April 2024 its revenue will hit between $295 million and $320 million, but Wall Street was expecting $317 million. Crucially the company said it would have a full-year non-GAAP operating loss of between $50 million and $75 million, whereas it had previously said C3 was aiming to be a non-GAAP profitable business by the end of fiscal year 2024.

It’s these two reasons that have sent the stock plummeting today. Not all’s lost, though — C3 is still up 207% this year and it recently announced its C3 Generative AI tool is now available on the AWS marketplace, which could be a boon for the stock to help it recover.

The bottom line

AI stocks are starting to look a little volatile. With such lofty highs and excitement around the tech, any whiff of bad news is going to pour cold water on the stock prices. Investors should beware the hype and stick to the tried-and-tested methods for good investing: do your research, diversify and think long-term.

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