Stock Market

When it comes to stock investing, learning should come before buying, not the other way around. Unfortunately, some financial traders are jumping headlong into (NYSE:AI) stock because they’ve been told that artificial intelligence is a red-hot trend now.

It’s fine to own a moderately sized share position in if that’s what you want to do. However, it’s important to know why you’re investing in this particular machine learning company.

There’s no denying that machine learning is top-of-mind in 2023. For instance, Goldman Sachs analyst Ben Snider recently called AI “the biggest potential long-term support for profit margins.”

Goldman analysts reportedly estimated that generative AI could boost U.S. productivity by around 1.5% annually over the next decade.

Yet, the financial markets are highly efficient. Much of the machine learning industry’s future growth is already priced into stock. So, don’t assume that you’re the first trader to catch on to the AI trend – and don’t assume that was the first company to serve the AI market.

AI $33.60

 Buying AI Stock for the Wrong Reasons

Unbelievable as this might sound, it’s entirely possible that some traders are buying AI stock just because of its ticker symbol. However, as the old saying goes, you need to know what you own. Frankly, some investors aren’t abiding by that principle.

Some stock traders believe that is just like generative AI specialist OpenAI, which became famous for its ChatGPT chatbot. In actuality, as Dana Blankenhorn summarized, is “primarily a defense contractor” that was “founded to serve the energy industry.”’s software has mainly been used for analytics, rather than to power generative AI or chatbot applications. For example,’s products might be used to estimate the “lifespan of industrial parts” for an energy corporation.

Unfortunately, several investors may have operated under the misconception that is exactly like OpenAI. This year’s rally in AI stock might, in part, be because of unsophisticated traders failing to differentiate between distinct AI niches.

Thus, “There’s little fundamental reason to explain the recent rally,” commented Canaccord Genuity analyst Kingsley Crane. Indeed, his concern may be justified by’s soft sales growth guidance for the fiscal year that ends in April of 2024.

Analysts had called for the company to post full-fiscal-year sales of $317 million. However,’s sales forecast falls short of this figure, indicating a midpoint of $307.5 million. Stock Might Be a Bandwagon Jumper

Most financial traders know little, if anything, about the history of After delving into the company’s history, you might actually think of as a latecomer to AI and even a bandwagon jumper or trend chaser.

You may be shocked to learn that the company was once an emissions tracking and energy business called C3 Energy. Then, the company was re-branded as an Internet of Things (IoT) focused business called C3 IOT. It actually wasn’t until 2019 that the company became the machine learning specialist

Don’t get the wrong idea here. has a generative AI product now, and it’s widely available. Yet, this product offering might be too little, too late. When people think of generative AI, they typically think of OpenAI’s ChatGPT first and foremost, not

One commentator even went so far as to call ChatGPT the death of That sounds like an exaggeration, but the point is duly noted. If the market was already crowded before jumped into the fray with a generative AI product, it will be difficult for the company to prevail over its rivals in that space.

Slow and Steady Could Win the Race

If you’re planning to take a position in stock, you might choose to start slowly with just a few shares. Also, it’s essential to enter the trade (and any trade, really) with full knowledge of what you own and why you own it. is a promising company, and it does currently serve the generative AI software market. Yet, that hasn’t been’s primary focus all along. Can you accept AI stock isn’t actually a pure play on generative AI? If so, feel free to consider a small share position and continue to do your due diligence on

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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