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Here’s Why BofA Has a Hold Rating on XP Inc. (XP)

​XP Inc. (NASDAQ:XP) is one of the Undervalued Stocks with Biggest Upside Potential. On December 12, Mario Pierry from Bank of America Securities reiterated a Hold rating on XP Inc. (NASDAQ:XP) with a $22 price target.

​Pierry from Bank of America Securities noted that while the CEO Thiago Maffra has outlined key strategic priorities for 2026, the earnings for the year are only expected to grow by around 8%. Maffra noted that the company will be focusing on standardizing Independent Financial Advisors’ services, developing alternative distribution channels, and expanding premium services to lower-tier customers. Despite these efforts, the earnings growth is expected to be limited mainly due to limited growth in revenue yield and an expected increase in investment in the B2C channel.

​Moreover, the analyst expects that these efforts will lead to increased engagement and enhanced customer experience, which will help earnings in the long term. However, in the short term, earnings are expected to stay limited due to elevated interest rates and essential investments.

​That said, XP Inc. (NASDAQ:XP) grew its fiscal Q3 2025 revenue by 17.04% year-over-year to $875.65 million and surpassed estimates by $11.84 million. Moreover, the EPS of $0.46 also came in slightly ahead of the consensus by $0.01. The growth was mainly driven by a 12% year-over-year increase in total client assets, which reached R$1.4 trillion in Q3.

​XP Inc. (NASDAQ:XP) is a technology-driven financial services platform that operates primarily in Brazil, offering a wide range of low-fee products and services to both retail and institutional clients. The company’s business includes wealth management, securities brokerage, investment management, and corporate and issuer services, such as M&A advisory.

While we acknowledge the potential of XP 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 XP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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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