When it comes to artificial intelligence (AI) stocks, the obvious choice for many investors is tech giant Alphabet (NASDAQ: GOOGL). After all, the company behind Google is at the forefront of AI innovation, with its DeepMind subsidiary leading the way in advanced machine learning. However, what if I told you there's another AI-focused stock that could outperform Alphabet in 2026 and beyond?

The Case for C3.ai

While Alphabet is a blue-chip tech titan, the lesser-known C3.ai (NYSE: AI) may offer investors an even greater opportunity in the AI space. C3.ai is a pure-play AI software company that provides enterprise-level AI solutions to a variety of industries, from manufacturing to healthcare to financial services.

What sets C3.ai apart is its laser focus on AI and its ability to deliver tangible business results for its customers. The company's AI platform is used by organizations to tackle complex problems, from predictive maintenance to fraud detection to supply chain optimization. As Reuters reports, C3.ai CEO Thomas Siebel believes his company's technology can "help solve the world's biggest problems."

Outpacing Alphabet's AI Ambitions

The bigger picture here is that while Alphabet is a dominant force in consumer-facing AI applications like Google Search and Google Assistant, C3.ai is carving out a lucrative niche in the enterprise AI market. The Wall Street Journal reports that the global enterprise AI market is expected to grow from $62.5 billion in 2022 to $310.6 billion by 2026, a compound annual growth rate of 38.1%. This is the sweet spot for C3.ai, and the company's ability to execute on this opportunity could allow it to outpace Alphabet's AI ambitions in the years ahead.

What this really means is that while Alphabet is a safe, blue-chip investment, C3.ai may offer investors a higher-risk, higher-reward play on the AI revolution. The company's laser focus, innovative technology, and strong customer traction make it a compelling alternative to the tech giant.

The Bottom Line

As the world becomes increasingly reliant on AI, investors would be wise to consider both Alphabet and C3.ai as potential plays on this transformative technology. While Alphabet's size and diversification offer stability, C3.ai's pure-play AI focus and growth potential could make it the more rewarding investment in the long run.