C3.ai jumps 7% amid software rally as AI sector rotation favors software over hardware.

Shares of C3.ai rose 7% following a broader rally in enterprise AI software stocks like UiPath and SoundHound AI, despite no company-specific news. The move reflects a market rotation favoring software companies over large-cap tech and hardware providers, driven by recent debates among AI researchers advocating a slower pace of AI model advancement. This shift suggests investors see less risk of software displacement, benefiting companies like C3.ai. The rally is part of a theme trade rather than isolated events, and its sustainability depends on whether the software-versus-hardware split holds in coming sessions.