Why? Well, the company's AI-driven consumer lending model performed incredibly well when the economy was strong, but it now faces a real test as soaring inflation sends interest rates higher at a rapid pace.ĭespite a recent industry-wide uptick in loan defaults and a broad deterioration in credit quality, the company says they remain within its models, but it might take some time for investors to be convinced. It soared to as high as $401 last year before gradually sinking back to $24 as of this writing. Upstart stock has taken investors on a roller-coaster ride since its public listing in December 2020 at $20 per share. Upstart is transforming the lending business Here's why they could deliver significant upside in the long run as part of a balanced portfolio. Upstart Holdings ( UPST -0.69%), Lemonade ( LMND -1.28%), and C3.ai ( AI -0.67%) are three tiny AI stocks each valued at $2 billion or less that are applying the technology in different ways. According to an estimate by McKinsey & Company, artificial intelligence will increase economic output by $13 trillion by 2030, with the overwhelming majority of the corporate sector using the technology to boost their businesses. Why? Because that's when the most value will be created.
But when it comes to investing in advanced technology like artificial intelligence (AI), the best approach is to take a long-term view of a decade or more. The majority of the tech sector has now reported, and there were some mixed results as consumers continue to grapple with soaring inflation and rising interest rates. Earnings season for the quarter ended June 30 is drawing to a close.
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