What Happened:

Shares of artificial intelligence (AI) software company C3.ai (NYSE:AI) jumped 33.5% in the afternoon session after Wall Street analysts continued to project huge gains in the artificial intelligence market. Sentiments continued to improve as the market digested the outstanding first quarter results and guidance reported by Nvidia. C3.ai saw a surge in trading activity, as over 91M shares were traded, quadrupling the average daily volume. 

What is the market telling us:

C3.ai's shares are very volatile and over the last year have had 70 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move was about two months ago, when the company dropped 14.4% on the news that short seller, Sahm Adrangi of Kerrisdale Capital, sent a letter to Deloitte & Touche, conveying worries about alleged accounting problems at the firm.

C3.ai is up 301% since the beginning of the year. Investors who bought $1,000 worth of C3.ai's shares at the IPO in December 2020 would now be looking at an investment worth $479.51.

Is now the time to buy C3.ai? Access our full analysis of the earnings results here, it's free.