C3.ai’s (AI) stock jumped more than 24% in yesterday’s trading session. The surge came after it announced an expanded deal with tech giant Microsoft (MSFT) to accelerate the adoption of enterprise AI solutions on MSFT’s Azure cloud platform. It’s worth noting that the companies first joined forces in 2018 to provide AI solutions globally.
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According to the new agreement, MSFT will be the preferred cloud provider for C3.ai’s services, while C3.ai will be the application software provider on Microsoft Azure. Also, C3.ai’s entire suite of enterprise AI applications will be made easily accessible to Azure users through the Microsoft commercial cloud portal.
Moreover, the companies will work together on a number of key areas, including technical integration, product development, joint delivery of solutions, sales and marketing initiatives, and even customer support.
C3.ai and MSFT Collaboration to Boost Efficiency
With this collaboration, both of the companies plan to improve existing AI tools and develop new solutions to help businesses reach their objectives and drive digital transformation.
Importantly, C3.ai CEO Thomas M. Siebel anticipates that this deal will allow customers to achieve faster results in supply chain optimization, enhance production efficiency, meet ESG goals, and improve energy management practices.
Is C3.ai a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on C3.ai stock based on four Buys, six Holds, and three Sells assigned in the past three months. At $26.45, the average C3.ai price target implies a 19.75% downside potential. Shares of the company have gained over 34% over the past three months.
See more C3.ai analyst ratings
Is MSFT a Good Buy Right Now?
Overall, MSFT has a Strong Buy consensus rating based on 27 Buys and three Holds assigned in the last three months. At $497.52, the average Microsoft price target implies a 19.08% upside potential. Shares of the company have declined about 2% in the past three months.
