AI Stocks with Explosive Potential in 2024
Artificial intelligence (AI) has been a hot topic for investors in recent years, with major tech giants like Microsoft and Amazon making significant investments in the industry. There are still opportunities for everyday investors to get in on the action, with small-cap AI stocks like C3.ai and Upstart Holdings showing explosive potential.
C3.ai, founded in 2009, was one of the first companies to provide AI products and services to businesses. With over 40 ready-made and customizable applications, the company has a strong foothold in at least 10 different industries. Its products, such as the C3.ai Demand Forecasting platform and C3.ai Reliability, have been proven to improve accuracy and efficiency for businesses, leading to happier customers. While the company’s revenue growth slowed over the last 18 months due to a shift in its business model, recent projections suggest that it will continue to accelerate in the coming quarters. This presents an opportunity for investors to buy into C3.ai at a discount, as its stock remains 83% below its all-time high.
Upstart Holdings, which went public in December 2020, has also shown explosive growth in the AI industry. Its AI-based algorithm for assessing creditworthiness has been particularly successful in the low-interest rate environment of the pandemic. The company’s stock took a hit in 2022 as interest rates rose and demand for unsecured personal and car loans decreased. Upstart has proven its algorithm’s effectiveness through data and has seen a 217% increase in its stock in 2023. With its stock still 90% below its all-time high, investors may see an opportunity to buy in at a discounted price.
AI stocks like C3.ai and Upstart Holdings have shown explosive potential in recent years and are poised for continued growth in 2024.
