Shares of C3.ai, Inc. (NYSE: AI) experienced a significant downturn during Wednesday's intraday trading session, plummeting 5.01% as investors reacted to recent analyst commentary. The artificial intelligence software provider's stock came under pressure following Morgan Stanley's decision to maintain its Underweight rating on the company.

The reaffirmation of the Underweight rating by a major financial institution like Morgan Stanley likely contributed to the negative sentiment surrounding C3.ai's stock. Analyst ratings often play a crucial role in shaping investor perceptions and can influence trading decisions, particularly for companies in the rapidly evolving artificial intelligence sector.

While specific details of Morgan Stanley's analysis were not immediately available, the maintenance of an Underweight rating typically suggests that analysts believe the stock may underperform relative to its peers or the broader market. This cautious stance could be reflecting concerns about C3.ai's valuation, competitive positioning, or growth prospects in the AI industry. As the market digests this information, investors appear to be reassessing their positions in C3.ai, leading to the observed sell-off.