What's Going On With C3.ai Stock Tuesday?

C3.Ai Inc AI shares are trading higher Tuesday. The stock appears to be benefitting from Palantir Technologies Inc’s PLTR strong quarterly results.

What Happened With PLTR: Palantir beat top-line estimates for the fourth quarter and reported a year-over-year revenue increase of 20% late Monday. The company’s earnings per share results were in line with analyst estimates.

Commercial revenue grew 32% year-over-year, driven by a 70% year-over-year increase in U.S. commercial revenue. Palantir’s customer count grew 35% year-over-year during the quarter, while its U.S. commercial customer count increased 55% year-over-year.

"Our results reflect both the strength of our software and the surging demand that we are seeing across industries and sectors for artificial intelligence platforms," CEO Alex Karp said in a letter to shareholders.

"The demand for large language models from commercial institutions in the United States continues to be unrelenting."

The commentary surrounding the strong demand Palantir is seeing for its AI platforms appears to be the main thing driving C3.ai shares higher Tuesday. Both Palantir and C3.ai offer AI solutions. C3.ai is focused on enterprise AI application software, which it delivers through its end-to-end AI platform.

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AI Price Action: C3.ai shares were up 6.34% at $25.66 at the time of publication, according to Benzinga Pro.

Photo: qimono from Pixabay.