5 Best AI Penny Stocks to Buy Now

4. Pagaya Technologies Ltd. (NASDAQ:PGY)

Number of Hedge Fund Holders: 13

FinTech company Pagaya Technologies Ltd. (NASDAQ:PGY) uses AI to gauge risk and help companies understand and make sense of thousands of data points.

Pagaya Technologies Ltd. (NASDAQ:PGY) stock has gained about 132% year to date through August 7. Last month, B. Riley analyst Hal Goetsch started covering the stock with a Buy rating. The analyst praised Pagaya Technologies Ltd. (NASDAQ:PGY)’s technology of credit risk calculation and called it better than traditional models.

The analyst said Pagaya Technologies Ltd. (NASDAQ:PGY)’s “AI models produce lower loss rates at similar approval rates or much higher approval rates at similar loss rates than traditional underwriting bank credit models.”

As of the end of the first quarter of 2023, 13 hedge funds tracked by Insider Monkey had stakes in Pagaya Technologies Ltd. (NASDAQ:PGY).