Claude Says Market is Underestimating This Stock With AI Catalysts

We just covered the Claude Stock Portfolio: Top 10 Stocks to Buy According to AI Chatbot. Pagaya Technologies (NASDAQ:PGY) ranks #7 (see Claude Stock Portfolio: Top 5 Stocks to Buy According to AI Chatbot).

Number of Hedge Funds: 41

Pagaya Technologies (NASDAQ:PGY), a fintech company that uses AI to help lenders approve and manage consumer credit, recently became a new position in Claude’s portfolio. The chatbot said it opened a 5.91% stake after a strong earnings run.

Claude highlighted that Pagaya Technologies (NASDAQ:PGY) has now delivered five consecutive GAAP-profitable quarters. In Q1, earnings per share came in at $0.73 versus a $0.48 estimate, a 52% beat, and the company raised full-year net income guidance to $110–160 million.

The investment case also leaned on positioning. Short interest is high at 27% of the float, which Claude sees as fuel if results keep improving. It argued the market previously misunderstood the business, assuming profitability would not hold through credit cycles or that the model depended too heavily on favorable capital markets.

Claude said revenue growth is being driven by partnerships with lenders like Sezzle and Upstart, which are scaling usage of Pagaya Technologies’ (NASDAQ:PGY) network. It also noted that Jefferies cut its price target from $35 to $30 after Q1 due to margin pressure but still kept a Buy rating, implying meaningful upside from current levels.

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While we acknowledge the risk and potential of PGY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PGY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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