C3.ai (AI) stock plunged about 11% on Thursday, after the enterprise artificial intelligence (AI) application software company announced that its founder and CEO Thomas Siebel will be stepping down due to health reasons. The company has commenced a search for Siebel’s successor. Wedbush’s top analyst Daniel Ives views this news as a “net negative” for the company.
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C3.ai Announces CEO Succession Plans
Siebel stated that he has experienced significant visual impairment after being diagnosed with an autoimmune disease in early 2025. He expressed confidence in the company’s future and said that he and C3.ai’s board of directors have initiated a search for a new CEO “who can take the company to the next level of growth and success.”
Furthermore, Siebel stated that he will continue to serve as the company’s CEO until his successor is appointed. After relinquishing his role as CEO, Siebel intends to continue as Executive Chairman of the company, focusing on strategy, product innovation, and other key areas.
Wedbush’s Daniel Ives Weighs in
Ives views the CEO transition as a “net negative,” as he believes that Siebel’s departure is a pivotal moment for C3.ai. Additionally, the 5-star analyst contends that the stepping down of Siebel significantly raises the possibility of the company being an acquisition target over the next three to 12 months.
He expects an acceleration in mergers and acquisitions (M&A) in the AI space from both strategic and financial players and views C3.ai as one of the most attractive M&A targets, given its focus on the convergence of AI, big data, and cloud computing. Ives has a Buy rating on C3.ai stock with a price target of $35.
Is C3.ai Stock a Good Buy?
Currently, Wall Street is sidelined on C3.ai stock, with a Hold consensus rating based on five Buys, six Holds, and three Sell recommendations. The average AI stock price target of $31.17 indicates about 20% upside potential from current levels.
