Oppenheimer upgraded AI to "outperform" from "perform"
The tech sector is in focus today, following reports that former OpenAI CEO Sam Altman could lead Microsoft's (MSFT) new artificial intelligence (AI) research team. Also seeing attention is C3.ai Inc (NYSE:AI), after the company cut jobs due to performance and to save costs.
To follow, Oppenheimer upgraded C3.ai stock to "outperform" from "perform" this morning, citing the company's AI strength, accelerating growth, and margin expansion. Still, 11 of the 14 analysts in coverage rate the stock a "hold" or worse, indicating there is still room for additional upgrades.
The shares are up 2.9% to trade at $28.84 at last check, though the $32 region has remained as pressure since August. Support is holding steady at the 40-day moving average, and so far this year C3.ai stock has amassed an impressive 161.3% lead.
Options volume is running at four times the intraday average amount, with 57,000 calls and 22,000 puts traded so far today. Most popular is the 11/24 30-strike call, where new positions are being opened.
These options traders are in luck, as the security is currently seeing better-priced premiums than usual. This is per its Schaeffer's Volatility Index (SVI) of 97%, which sits in the low 19th percentile of its annual range.