Nvidia (NASDAQ: NVDA) has been at the forefront of the artificial intelligence (AI) revolution, delivering extraordinary returns to long-term investors. Over the past five years, the tech giant has surged 2,254%, and since its 2001 IPO, it has skyrocketed by an astonishing 36,500%.
With a market capitalization of $2.82 trillion, Nvidia is now one of the world’s largest companies. However, expecting it to replicate its past returns may be unrealistic.
Fortunately, the AI industry is poised for continued growth, with projections from Statista estimating the market will expand from $243.7 billion in 2025 to $826.73 billion by 2030. If you feel like you’ve missed out on Nvidia, here’s another AI stock worth considering for long-term investment.
Strong Growth Potential
Upstart (NASDAQ: UPST), valued at $4.34 billion, is an AI-driven, cloud-based lending platform that connects consumer loan demand with lending partners. While its stock has more than doubled over the past year, it remains 88% below its all-time highs.
Shares of Upstart surged after the company posted impressive fourth-quarter results, signaling a strong rebound following a tough lending environment in recent years.
In Q4, Upstart reported revenue of $219 million, marking a 56% year-over-year increase and a 35% sequential jump. Loan origination volume climbed 33% quarter-over-quarter. The company came close to GAAP profitability, with a net loss of just $2.8 million, while adjusted EBITDA soared to $39 million—the highest level since early 2022.
CEO Dave Girouard highlighted significant sequential growth across all products, with auto loans and home equity lines of credit (HELOCs) each growing by around 60%, while small-dollar loans surged 115%.
What’s Next?
Looking ahead to 2025, Upstart is targeting $1 billion in total revenue and expects to achieve GAAP profitability in the second half of the year. The company is also forecasting an adjusted EBITDA margin of around 18%, reflecting its commitment to operational efficiency.
Upstart’s core growth strategy revolves around AI-driven innovation. Its latest AI model, Model 19, introduced the Payment Transition Model, enhancing risk assessment accuracy by analyzing intermediate loan delinquency stages rather than just final outcomes.
“One of our very early Upstarters who went on to join Google’s DeepMind said something recently that stuck with me: Upstart is building the foundation model for credit. Nobody else is even trying,” Girouard remarked.
Wall Street’s Take on Upstart Stock
Analysts expect Upstart to post adjusted earnings of $1.39 per share in 2025, a significant improvement from an estimated $0.20 loss per share in 2024. By 2027, earnings are projected to reach $3 per share.
Wall Street remains optimistic about Upstart’s potential, with analysts forecasting an 80% upside based on current price targets.
For investors seeking an AI stock with high growth potential beyond Nvidia, Upstart could be a compelling long-term opportunity.
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