Artificial intelligence (AI) stocks had an incredible run in 2023, with two standout performers posting gains of 159% and 217% respectively. C3.ai and Upstart Holdings proved to be unstoppable in the AI market, and there are still opportunities for investors to capitalize on their success in 2024.
C3.ai, founded in 2009, was one of the pioneers in providing AI products and services to businesses. With over 40 ready-made and customizable applications, C3.ai has successfully implemented AI solutions in various industries, helping businesses improve their operations and customer satisfaction. Their Demand Forecasting platform, for example, increases sales projection accuracy by up to 15%, leading to better inventory management and pricing. C3.ai’s Reliability tool has also been adopted by major organizations like Shell and the U.S. Air Force to reduce equipment downtime through predictive maintenance.
Although C3.ai’s revenue growth slowed recently as it transitioned to a consumption-based model, the company’s second-quarter results in fiscal 2024 showed a 17% year-over-year increase in revenue. This positive trend is expected to continue, presenting a significant investment opportunity. Despite its 159% gain in 2023, C3.ai stock is still 83% below its all-time high, making it an attractive option for buyers looking to take advantage of the projected upswing.
Upstart Holdings, known for its AI-driven creditworthiness assessment algorithm, experienced a remarkable rise in its stock price during the pandemic. However, rising inflation and interest rates caused a significant decline in their stock value. Despite this setback, Upstart stock surged by 217% in 2023, indicating a potential rebound and long-term growth prospects.
Upstart’s algorithm, capable of analyzing 1,600 data points and delivering instant loan approvals with an 88% success rate, positions the company as a game-changer in the lending industry. With Wall Street experts predicting multiple interest rate cuts from the U.S. Federal Reserve in 2024, consumer demand for loans is expected to rise, benefiting Upstart. The company, which facilitates loans on behalf of its bank and credit union partners, has a massive growth opportunity in the $4 trillion loan market in the U.S. With recent entry into the mortgage segment, Upstart’s prospects for growth are even more promising.
Both C3.ai and Upstart have experienced significant stock price increases in 2023, and there are clear indicators pointing towards continued success in 2024. Despite being below their all-time highs, the companies’ strong fundamentals and market potential make them appealing investments for those looking to capitalize on the AI boom.
Investing in the future of AI technology and its various applications presents a unique opportunity for investors to benefit from the growth potential of these two unstoppable AI stocks. As the AI industry continues to evolve and expand, C3.ai and Upstart are well-positioned to lead the way with their innovative solutions.
Disclaimer: The above article is for informational purposes only and should not be considered as financial advice. Investing in stocks involves risks, and investors should conduct their own research and seek professional guidance before making investment decisions. The article reflects the author’s opinion at the time of writing, and it may not represent the latest developments or announcements from the mentioned companies.
