Upstart (UPST) Rallies 10.64% on Steady Fed Rates

We recently published a list of These 10 Stocks Boast Double-Digit Gains Amid Boring Market. Upstart Holdings Inc. (NASDAQ:UPST) is one of the best-performing stocks on Thursday.

Upstart Holdings grew its share prices by 10.64 percent on Wednesday to close at $59.08 apiece following the Federal Reserve’s decision to keep interest rates steady, while keeping its forecast of two cuts for the year.

The announcement bolstered investor sentiment among financial and lending companies, including Upstart Holdings Inc. (NASDAQ:UPST), on optimism over a strong demand from more expected rate cuts.

Upstart Holdings, Inc. (NASDAQ:UPST) is an Artificial Intelligence-powered lending marketplace which offers services such as personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar “relief” loans. It connects millions of consumers to more than 100 banks and credit unions that leverage its AI models and cloud applications.

A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company.

Upstart Holdings, Inc. (NASDAQ:UPST) currently holds a “hold” recommendation from Zacks Research amid clear operating leverage and its aggressive expansion into new credit categories with improving AI and funding structures.

While we acknowledge the potential of UPST as an investment, 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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