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BofA Starts Covering Affirm Holdings (AFRM) with Buy Rating

Affirm Holdings Inc. (NASDAQ:AFRMis among the 10 most undervalued stocks to buy and hold for 10 years. On March 5, BofA Securities initiated coverage on Affirm Holdings Inc. (NASDAQ:AFRM) with a Buy rating and a price target of $82. In its report, the firm cited Affirm Holdings Inc.’s (NASDAQ:AFRM) diversified growth and strong gross merchandise volume momentum as key factors supporting the rating, adding that the company’s expanding merchant and consumer networks and efficient multichannel model drive above-market growth.

BofA Securities noted that long-term demand benefits from younger consumers adopting buy-now, pay-later services and choosing Affirm as their preferred payment option. The firm said Affirm’s consistent unit economics and disciplined credit management reinforce confidence in the business model, highlighting that the company increased its fiscal 2026 targets and showed no signs of credit or demand weakness.

Meanwhile, on March 3, Stripe announced that it will support Affirm Holdings Inc. (NASDAQ:AFRM)’s buy-now, pay-later methods as a payment option for Shared Payment Tokens, a payment primitive for agentic commerce that lets AI agents initiate payments with a customer’s permission and preferred payment method.

Affirm Holdings, Inc. (NASDAQ:AFRM) operates a payment network across Canada, the United States, and internationally. The company’s platform includes a consumer-focused app, a point-of-sale payment solution, and merchant commerce solutions.

While we acknowledge the potential of AFRM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AFRM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Best Stocks to Buy and Hold for the Next 2 Years.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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