12 Most Promising AI Stocks According to Wall Street Analysts

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1) Pagaya Technologies Ltd. (NASDAQ:PGY)

Average Upside Potential: ~148.1%

Number of Hedge Fund Holders: 21

Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology company, leveraging AI and data analytics to offer solutions for the broader financial services industry.  John Hecht from Jefferies gave a “Buy” rating on the company’s shares, providing a price target of $25.00. The company’s technology allows it to provide a range of financial products, such as personal loans, auto loans, and point-of-sale financing. Therefore, this diversification strategy placed Pagaya Technologies Ltd. (NASDAQ:PGY) as a versatile player in the alternative lending space.

AI continues to drive broader US markets, with application companies such as Pagaya Technologies Ltd. (NASDAQ:PGY) well-placed to reap the benefits. Advancements in AI research are expected to improve the company’s proprietary machine learning models, allowing more accurate credit risk assessment. Furthermore, financial institutions continue to adopt AI to streamline operations and improve the decision-making process. Pagaya Technologies Ltd. (NASDAQ:PGY)’s AI-driven platform remains well-placed to tap this growing demand, mainly in fields such as credit underwriting, risk management, and investment strategies.

With AI adoption broadening, more industries (apart from traditional banking) can seek AI-driven financial solutions. Benchmark reaffirmed a “Buy” rating on the shares of Pagaya Technologies Ltd. (NASDAQ:PGY), issuing a $21.00 price target on 16th October.

While we acknowledge the potential of PGY as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than PGY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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