As the AI industry soars, investors are hunting for the next big opportunity. C3.ai and Upstart Holdings, two AI stocks that recorded impressive gains in 2023, are garnering attention for their potential in 2024. Here's a closer look at why these stocks are worth watching.
C3.ai's strategic shift boosts growth
C3.ai, a company that was on the cutting edge of AI in 2009, continues to lead the pack with a growing suite of more than 40 tailor-made and customizable applications. These platforms help businesses across diverse sectors to adopt AI technology smoothly. A recent shift towards consumption-based deals from subscription-based ones initially slowed down the company's revenue growth. However, this calculated move is now paying off as customers appreciate the flexibility of paying for what they use. With its revenue showing signs of acceleration, the company's stock which saw a significant increase in 2023 is set to surge even further.
Upstart Holdings, a company that has developed an AI-based algorithm to assess the creditworthiness of potential borrowers, has been a noteworthy player in the stock market. Despite a challenging economic environment that resulted in a significant drop in its stock, Upstart has shown resilience. The company's AI-powered approach, which can analyze an extensive range of data points to deliver instant approval, is positioning it as a leader in the future of lending. With experts predicting a drop in interest rates in 2024, the conditions could be ripe for Upstart's stock to bounce back stronger.