The stock market is abuzz with excitement as investors anticipate the dawn of a new bull market driven by one revolutionary technology: artificial intelligence (AI). The potential of AI has captivated top tech leaders, who compare its transformative impact to that of the internet, fire, or electricity. As this emerging technology continues to gain momentum, some experts predict that it could unlock a market worth over $10 trillion. In this article, we’ll explore two AI stocks that have the potential to generate massive returns for investors who seek to capitalize on the power of AI.
Upstart, an AI-backed lending platform, experienced a tumultuous period in the past year as its top-line growth turned negative, profits vanished, and its stock price plummeted by more than 97% from its peak. However, the tides have turned in favor of Upstart this year, with investors taking a second look at its AI-based consumer lending technology and improvements in the macroeconomic environment, signaling a bullish trend.
What sets Upstart apart from traditional lending platforms is its innovative use of AI algorithms. Traditional lenders rely on credit scores and historical financial data to assess borrowers’ creditworthiness, often leaving out important information about their potential. Upstart’s AI system goes beyond traditional credit metrics and analyzes a vast array of non-conventional data points, such as education, job history, and even social media behavior. By leveraging machine learning, Upstart can more accurately predict a borrower’s ability to repay loans, enabling them to extend credit to a wider range of borrowers while minimizing default risks.
Despite the challenges Upstart faced in the past, the company’s AI-driven lending model has shown great promise. As the economy recovers and consumers seek access to credit, Upstart’s innovative approach positions it to capture a significant market share. As the AI technology further improves and refines its risk assessment capabilities, Upstart could potentially become a leading player in the lending industry, offering investors a chance to profit…