Upstart Holdings (UPST): An AI-Powered Lending Platform With Growth Ahead

Upstart Holdings, Inc. (NASDAQ:UPST) is one of the Best AI Stocks to Buy under $50. This AI lending platform helps banks and credit unions better assess credit risk. While lenders typically use simple rule-bases systems focusing heavily on FICO scores and limited variables, UPST evaluates over 2,500 data points for the same.

Moreover, the platform’s learning models continuously learn and evolve with each borrower’s repayment behavior. In early November, Mizuho analyst Dan Dolev lowered the firm’s price target on the stock to $66 from $86 and kept an “Outperform” rating on the shares. The firm updated the company’s model post the Q3 report.

The AI lending marketplace reported third-quarter revenue of $277.1 million, a slight miss compared to the forecast of $279.59 million. On the other hand, earnings for the quarter, $0.52, surpassed the forecast of $0.42. Looking ahead, the company projects Q4 2025 revenue to reach $288 million and forecasts a full-year 2025 revenue of $1.035 billion.

The CEO of Upstart is optimistic about the company’s game plan post its quarterly report.

“In Q3, we continued to execute on our 2025 game plan of rapid growth, profitability, and AI leadership — all anchored in exceptional credit performance. The results include 80% year-on-year growth in originations with 71% growth in revenue, and a sixfold sequential increase in GAAP net income. Our AI platform is performing exactly as designed, rapidly adapting to evolving macro signals while delivering strong results.”

-Dave Girouard, Co-founder and CEO of Upstart.

Upstart Holdings, Inc. (NASDAQ:UPST) operates a cloud-based artificial intelligence (AI) lending platform in the United States.

While we acknowledge the risk and potential of UPST 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 UPST and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Trending AI Stocks on Wall Street and 10 AI Stocks Investors Are Watching

Disclosure: None.