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Consider This AI Agent Stock Over C3.ai

newsfeedback@fool.com (Jack Delaney)
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⚡ Quantum Brief
The agentic AI market is projected to surge from $8 billion in 2026 to $215 billion by 2035, representing a 25x growth as decision-making AI agents gain enterprise adoption. C3.ai launched an agentic AI product in September 2025 but faces declining revenues, with fiscal 2026 guidance ($246.7M–$250.7M) down sharply from 2025’s $389M, prompting restructuring. SoundHound AI outperformed competitors with 99% revenue growth in 2025 ($169M) and forecasts $225M–$260M in 2026, driven by enterprise deals in retail, insurance, and telecom. SoundHound’s AI agents handle real-world tasks like Panda Express orders and automotive customer service, freeing human workers for higher-value roles. Both companies remain unprofitable, but SoundHound’s rapid revenue growth and expanding client base make it a stronger investment than C3.ai amid the agentic AI boom.
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By Jack Delaney – Mar 10, 2026 at 2:44AM ESTKey PointsOver the next decade, the global market for decision-making AI agents could multiply by a factor of more than 25 to a value of $215 billion.C3.ai is a player in that market, but its sales are slowing. SoundHound AI grew its revenues by 99% in 2025. In September, artificial intelligence (AI) enterprise company C3.ai (AI +0.87%) announced that it was launching an agentic AI product. "Each AI agent in C3 AI Agentic Process Automation is given an objective together with constraints, instructions, and memory, and uses known data, tools, and business knowledge to achieve that objective. Workflows can run on demand, be triggered by events, or operate on a schedule," the company's announcement said. Based on its revenue outlook, though, it doesn't look like this innovation will be a game-changer for C3.ai anytime soon. As such, if you're looking for investments in the agentic AI space, you may want to consider an alternative. Image source: Getty Images. Still figuring things out We're still in the early innings of the agentic AI era, but the market for this technology is expected to explode over the next several years. Precedence Research forecasts that it will grow from an $8 billion market in 2026 to a $215 billion market by 2035. Because they are early to this game, companies like C3.ai are currently unprofitable. That's not surprising, but as a shareholder, you don't want to see a company's revenue falling while it's in the red -- and that's what's happening with C3.ai. ExpandNYSE: AIC3.aiToday's Change(0.87%) $0.08Current Price$9.27Key Data PointsMarket Cap$1.3BDay's Range$8.84 - $9.3052wk Range$7.72 - $30.24Volume108KAvg Vol7MGross Margin46.77% Its fiscal 2026 guidance for revenue of $246.7 million to $250.7 million is well below its fiscal 2025 total of around $389 million. Those pressures led the company to launch a restructuring plan. In short, it's going to be a challenging time ahead for C3.ai. That's why I'd rather own SoundHound AI (NASDAQ: SOUN) instead. AI agents in action While C3.ai is trying to find its footing, SoundHound AI is expanding. You can find its AI agents being used to handle a variety of tasks, ranging from taking orders at Panda Express to answering questions about your car's tire pressure. More companies are recognizing the value SoundHound AI offers, as its voice AI platform can handle an array of routine customer interactions, freeing up human workers to focus on higher-value tasks. ExpandNASDAQ: SOUNSoundHound AIToday's Change(1.92%) $0.15Current Price$8.22Key Data PointsMarket Cap$3.5BDay's Range$7.61 - $8.2352wk Range$6.52 - $22.17Volume665KAvg Vol26MGross Margin32.96% Speaking to that demand, it closed a record number of enterprise deals in Q4. Among them were deals with a global smart TV manufacturer, a global Japanese insurance company, and a U.S. multinational telecommunications conglomerate -- reflecting the broad range of use cases for technology. In 2025, revenue rose by 99% to roughly $169 million,and that growth is expected to continue at a steady pace; management forecasts that the top line will land between $225 million and $260 million in 2026. Like C3.ai, SoundHound AI isn't profitable and remains a high-risk stock. With that being said, when evaluating investable opportunities in AI stocks, I'd rather consider the company with rising demand and growing revenues than the one that's in the middle of restructuring in response to a sales decline.Read NextMar 9, 2026 •By David Jagielski, CPAWhy SoundHound AI Stock Isn't Taking Off Despite Doubling Its Revenue Last YearMar 6, 2026 •By Jack DelaneyAgentic AI Is Rising Fast, and SoundHound AI Might Be Better Positioned Than You ThinkMar 5, 2026 •By Anthony Di PizioThis Popular Artificial Intelligence (AI) Stock Is Down 19% in 2026. Here's What Could Happen Next.Mar 5, 2026 •By Keithen DruryIs SoundHound AI the Ultimate AI Play for 2026?Mar 4, 2026 •By Geoffrey SeilerAs Revenue Continues to Surge, Is SoundHound Stock a Buy?Mar 3, 2026 •By Keithen Drury3 Red-Hot Growth Stocks to Buy in 2026About the AuthorJack is a seasoned content strategist with over a decade of experience in financial publishing. He's directed technology, emerging opportunities, and alternative asset publications to deliver actionable insights to investors. He has a B.A. in Communication Studies.TMFJackDelaneyStocks MentionedSoundHound AINASDAQ: SOUN$8.23(+1.92%)+$0.16C3.aiNYSE: AI$9.27(+0.87%)+$0.08*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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