Shares of artificial intelligence (AI)-based product developers soared on Friday as strong forecasts from Inc, a retail investor favorite, amplified the current euphoria in the sector driven by the launch of OpenAI’s ChatGPT.

C3.a1 is forecasting better-than-expected revenue and earnings for both the fourth quarter and fiscal 2023, after its third-quarter results beat Wall Street estimates.

Shares of the artificial intelligence software provider were up 16% at $24.80 and were one of five trending stocks on the StockTwits social network. The papers are headed to score their biggest daily gain in a month.

“The company is starting to gain momentum in creating significant business opportunities in its pipeline with its suite of innovative enterprise AI solutions,” said Daniel Ives, an analyst at Wedbush.

The company’s target of cash earnings and adjusted profitability by the end of fiscal 2024 also boosted the stock, but Ives believes executing on these ambitions is key to regaining confidence heading into 2023.

Retail investors have flocked to small-cap companies building AI tools, as companies such as Google parent Alphabet Inc and Microsoft Corp compete to make AI the next big growth engine.

Microsoft’s investment in OpenAI’s ChatGPT further boosted the popularity of AI companies. Chatbots like ChatGPT are software applications that aim to mimic human conversation using artificial intelligence.

Other big AI stocks were also rising on Friday, with, conversation intelligence company SoundHound AI, and Thai security company Guardforce AI climbing between 5% and 20%.

Year-to-date, these stocks, including, are up between 33.9% and 321.6%, based on Thursday’s close.

“AI could become Wall Street’s new gold rush,” says Adam Sarhan, managing director of 50 Park Investments in Florida.

“But it still needs some more time to mature a bit, better price action and prove it can generate returns for investors.”


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