Artificial intelligence (AI) stocks have been all the rage on Wall Street, and it’s easy to see why.
Stocks like Nvidia have surged since the launch of ChatGPT nearly two years ago, creating trillions of dollars in market value for investors. However, Wall Street isn’t so fond of every AI stock on the market.
Take Upstart (NASDAQ: UPST), for example. The AI-based consumer loan provider has struggled recently, and Wall Street looks downright bearish on it. Of the 18 analysts covering the stock (as tracked by The Wall Street Journal), just one rates it a buy, and eight recommend selling. The average price target on the stock is $23.47, implying about 40% downside from its value as of this writing.
However, the stock has been surging since its second-quarter earnings report went out on Aug. 6, and the stock looks poised for more gains. Here are two reasons why.
