Close menu




September 27th, 2023 | 08:30 CEST

AI shares in focus: C3.ai, Norcom, Amazon - Upgrade at any cost

  • Software
  • AI
  • Technology
Photo credits: pixabay.com

The implementation of generative artificial intelligence on a large scale has the potential to significantly boost the German economy, according to a study by IW Consult, conducted on behalf of Google. In this context, the comprehensive integration of programs such as ChatGPT by at least half of domestic companies could increase economic output by around EUR 330 billion. This value corresponds to almost 10% of the German gross domestic product of the previous year. This is likely to herald a quantum leap for providers of intelligent software.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: C3.AI INC | US12468P1049 , NORCOM INF.TECHN. INH ON | DE000A12UP37 , AMAZON.COM INC. DL-_01 | US0231351067

Table of contents:


    NorCom GmbH & Co KGaA - Ideally positioned

    Munich-based technology provider NorCom has been listed on the stock exchange since 1999 and has thus been able to experience the rise and fall of the new market first-hand. With the onset of the fourth technical revolution based on information and communications technology and driven by Artificial Intelligence, the Company, which has a market capitalization of EUR 14.73 million, could now finally experience its breakthrough.

    NorCom offers a complete range of Big Data and AI solutions and thus provides technological solutions for issues that pose challenges for almost all large corporations as well as public administrations: Working with and exchanging large amounts of data quickly and securely, information governance, legally compliant data lifecycle management, and the use of artificial intelligence and data analytics.

    This is bundled in the DaSense platform, an advanced AI technology that can analyze documents and trigger and support workflows. It brings together enterprise data from a wide variety of formats and sources, enabling the development of custom applications that can be used directly by business users. In addition, DaSense supports users in analyzing and organizing documents and automates time-consuming, error-prone routine tasks, resulting in higher effectiveness and, thus, lower costs for the customer.

    The customer base is made up of many industries. In addition to public authorities such as the Federal Employment Agency or the Federal Audit Office, the industrial company Stihl, the auditing and consulting firm PWC and the car manufacturer Mercedes-Benz Group also rely on the services of the Bavarians. After a strong rise due to the AI hysteria surrounding ChatGPT, the price of NorCom shares corrected and is currently at the level of May this year at EUR 6.60. If demand for innovative AI solutions continues, this area should offer an attractive entry opportunity in the long term.

    Amazon with Billion-Dollar Investment

    Who will take the pole position in the latest technological revolution? In addition to Microsoft, which has made a billion-dollar investment in OpenAI, and Google, another technology giant, Amazon, is now entering the competition.

    The world's leading online retailer plans to invest up to USD 4 billion in Anthropic, a company that created the chatbot Claude. In parallel, both companies announced Monday that Amazon's AWS subsidiary will become the primary cloud infrastructure provider for Anthropic. AI-based chatbots like ChatGPT require immense computing capacity, which comes at a high cost. That is why collaborations with cloud giants such as Microsoft and Amazon are of great value to emerging AI companies. In turn, these tech companies can benefit from the innovations of startups.

    From a chart perspective, Amazon shares were able to reach a new high for the year in September but then bounced off the resistance from August of last year at USD 146.57. Currently, the stock is trading at USD 131.27. Analysts on Reuters Refinitiv see the average price target for the stock at USD 174.50.

    C3.ai - Wild roller coaster ride

    It is not uncommon for companies dedicated to new, innovative technologies to experience high fluctuations in their stock prices. Thus, investors in the US AI company C3.ai are also likely to feel like they are on a roller coaster. The Company, founded by industry veteran Thomas Sibel, started the year strong, surging approximately 380% to a yearly high of USD 48.87 by mid-June. The stock has since given up around half of its gains. Currently, the stock is trading at a broad resistance zone in the USD 24 area.

    When publishing its figures for the first quarter of fiscal year 2024, the provider of AI software for enterprises managed to surprise in terms of profitability, but this could not prevent the share price from falling further. According to the report, C3.ai suffered a loss of USD 0.09 per share in the first quarter, beating analysts' forecasts of a loss of USD 0.173 per share.

    The Company, headquartered in Redwood City, California, also posted a 10.7% increase in revenue to USD 72.4 million, again exceeding financial experts' expectations of USD 71.6 million. In the second quarter, CEO Siebel expects revenues of between USD 72 million and USD 76.5 million, with between USD 295 million and USD 320 million expected to cross the books in the full year.

    Citing growing demand for enterprise solutions in the AI sector, Siebel expressed satisfaction with the first three months of the current fiscal year: "It is difficult to describe the extent of the growing interest we are seeing globally in enterprise AI adoption. Our enterprise AI applications, and C3 Generative AI in particular, are proving very popular," the group CEO said in a statement.


    There is a lot of movement in the future market of Artificial Intelligence. Amazon is planning another billion-dollar acquisition. C3.ai is seeing growing interest in its enterprise software. NorCom should benefit from strong demand due to increasing digitization in government agencies and the automotive sector.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Juliane Zielonka on June 20th, 2024 | 06:30 CEST

    Apple, Kraken Energy, Palantir - Network effect for market expansion, who is ahead?

    • Mining
    • Uranium
    • Software
    • Technology

    Network effects play a decisive role for companies in securing and expanding market share. Apple is strengthening its consumer credit business through its partnership with Affirm. This will allow the Company to further expand its mobile payment solution in the US while it struggles with regulatory challenges in the EU. Kraken Energy is a US-based uranium exploration company strategically positioned in the global energy industry. With a focus on high-value projects such as the Apex Uranium Mine in Nevada, Kraken Energy is capitalizing on the increasing global demand for nuclear energy resources. Palantir, on the other hand, is actively expanding its business towards B2B customers, particularly through AI-driven data analysis. Which of the three companies is ahead in terms of network effects?

    Read

    Commented by Stefan Feulner on June 10th, 2024 | 07:00 CEST

    Infineon, MGI - Media and Games Invest, Palantir - These 3 shares are about to break out

    • Digitization
    • AI
    • chips
    • Software

    Last week was a tough one. Firstly, the European Central Bank heralded the turnaround in interest rates and, as expected, lowered the key interest rate by 25 basis points to 4.25%. Secondly, the hype surrounding meme stocks, and GameStop in particular, was revived by the comeback of influencer Keith Gill, aka Roaring Kitty. Following a live stream on YouTube, the share price soared again and will likely remain a hot topic over the next few trading days.

    Read

    Commented by Fabian Lorenz on May 30th, 2024 | 07:30 CEST

    Takeover fever? Nel, Super Micro Computer, Kraken Energy

    • Mining
    • Uranium
    • nuclear
    • renewableenergies
    • AI

    In the slipstream of Nvidia, the Super Micro Computer share is heading back towards an all-time high. The temporary dip following the strong quarterly figures - which fell short of even higher expectations - has ended, and the share is targeting the USD 1,000 mark. Energy producers are increasingly under the spotlight as the AI boom is set to surge energy demand. The billion-dollar takeover of Atlantica Sustainable Infrastructure by the private equity company Energy Capital Partners is currently underway. It is evident that some of the energy demand will have to be met by nuclear energy, benefiting companies like Kraken Energy, which is developing new uranium deposits in the US. Additionally, takeover speculation has recently driven up Nel ASA's share price, but is the rally already over?

    Read