Today was not a great day for AI stocks in general. It was a great day for some particular AI stocks, like Nvidia (NASDAQ:NVDA), who led the charge for AI stocks for the last few months. But for much of the field, like Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), and C3.ai (NASDAQ:AI), it was a much worse day.
Nvidia rolled out some spectacular second-quarter results and offered up even more spectacular guidance for the third quarter, which dazzled most of the field, if only for a little while. However, that turned around, as C3.ai lost over 10% at the time of writing. Similarly, small AI operations like SoundHound (NASDAQ:SOUN) and BigBearai (NASDAQ:BBAI) lost just over 6% and 4.68%, respectively. Even major shops like Alphabet and Microsoft slipped, with Alphabet losing just over 1% and Microsoft losing a little more at 1.46%.
In some cases, there were specific reasons for the losses. Microsoft, for example, suffered a reversal when it was discovered that its ChatGPT AI program couldn’t quite keep pace with human experts on cancer treatments. But for the most part, it seems as though expectations around AI are starting to come back to Earth.
C3.ai had the worst day so far, down the most in the market. But it’s also the only one of the six stocks mentioned with a downside risk. With an average price target of $27.69, C3.ai stock comes with a 4.78% downside risk. Meanwhile, the highest upside potential comes from one of the stocks hit by today’s trading. It’s BigBearai Holdings, whose $5 average price target gives it a shocking 277.36% upside potential.
