We recently published a list of the 13 Best Artificial Intelligence Stocks Under $50 to Buy Now. In this article, we are going to take a look at where SoFi Technologies, Inc. (NASDAQ:SOFI) stands against other AI stocks under $50.
On May 8, Dan Ives of Wedbush Securities joined CNBC’s ‘Squawk on the Street’ to discuss his bullish outlook on the AI sector and tech. Ives used the metaphor of technology speeding down the highway at 100 mph in a Ferrari, while regulation lags in the slow lane at 35 mph. He emphasized that, given this disparity, much of the oversight will be self-regulatory, as the use cases for AI are expanding rapidly. He predicted continued consolidation in the sector and stated that regulatory efforts would not halt this trend. The discussion also touched on international trade, particularly regarding the UK, China, India, and Vietnam. Ives described any progress with the UK as a small but positive step, but stressed that the real focus for tech companies remains on China. He explained that while the UK relationship is notable, it does not have the same impact as China, and tech companies are closely monitoring developments in Asia because of their significance to larger deals. He also predicts that major tech players would acquire smaller or emerging private companies and argued that the ongoing AI revolution, unstoppable even in the face of tariffs, will drive companies to position themselves advantageously for the future, with consolidation playing a key role.
Ives acknowledged the current regulatory uncertainty and unexpected moves from major tech partners but maintained his bullish stance on big tech overall due to accelerating use cases and spending in the sector. Ives also discussed the enterprise adoption of agentic AI, or AI agents, and when their impact on business efficiency and margins would become evident. Ives emphasized that the AI revolution is spreading across software, cybersecurity, and the internet, and that tariffs will not impede this fourth industrial revolution. In fact, Ives thinks that tariffs might even accelerate AI adoption by increasing price pressures and driving companies to seek efficiencies, highlighting that this earnings season was pivotal, with accelerated spending on AI. He observed that AI-related budgets have surged from 1% to 2% a year ago to about 15% now, and argued that neither regulatory hearings nor tariffs can slow this momentum. He likened the current AI revolution to a decisive last-second play in basketball, as it’s delivering unexpected and transformative results for the tech sector.
Our Methodology
We first sifted through ETFs and financial media reports to compile a list of the top AI stocks under $50. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A professional banker shaking hands with an entrepreneur in a boardroom setting.
SoFi Technologies, Inc. (NASDAQ:SOFI)
Share Price as of May 12: $13.18
Number of Hedge Fund Holders: 43
SoFi Technologies, Inc. (NASDAQ:SOFI) provides various financial services that are personalized through AI and data science. It operates through 3 segments: Lending, Technology Platform, and Financial Services. One of the company’s platforms includes Technisys, which is a cloud-native digital & core banking platform for software licenses and associated services.
In Q1 2025, the company’s technology platform generated $103 million in net revenue, which was a 10% year-over-year increase. While the number of accounts slightly decreased by 6% year-over-year to 158 million, revenue still grew by 10%, with similar growth and potential acceleration expected in Q2. This is attributed to the monetization of existing clients and new deals signed in new client segments, such as a first-of-its-kind reward debit program with Wyndham Hotels and Resorts.
SoFi Technologies, Inc. (NASDAQ:SOFI) anticipates that new client wins in the tech platform business will have an impact on revenue in 2026 and beyond. William Blair analyst Andrew Jeffrey kept a bullish stance on the stock, giving it a Buy rating on April 25 due to the company’s strong market position and financial performance, which is evidenced by the 48% year-over-year growth in ARPU.
Patient Capital Management expressed optimism for the company’s future and stated the following regarding SoFi Technologies, Inc. (NASDAQ:SOFI) in its Q4 2024 investor letter:
“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like SoFi Technologies, Inc. (NASDAQ:SOFI) and Coinbase Global Inc. (COIN) during the year. Both companies rebounded strongly in the fourth quarter.
Sofi Technologies Inc. (SOFI) was a standout in the quarter, climbing 95% and up 156% from the intra-day lows in June. The company benefited from Fed rate cuts and the market’s growing optimism that the economy will avoid a recession. The company continues to grow its customer count while successfully cross selling into their loans and financial service products. In the quarter, we saw the company take on a new revenue stream by originating loans for third parties, creating an attractive balance sheet-light revenue source, helping improve return on equity and margins. Sofi is early in its life cycle, currently being a small player in a very large total addressable market (TAM). With their strong management team, we believe the company will continue to deliver on their guidance of strong growth and expanding margins.”
Overall, SOFI ranks 3rd on our list of the best artificial intelligence stocks under $50 to buy now. While we acknowledge the growth potential of SOFI, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SOFI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.