Upstart Holdings (NASDAQ: UPST) is positioning itself for significant growth as it prepares to launch America’s first AI-powered bank, following a record revenue of $1.04 billion in 2025, a 64% increase from the previous year. The company has been leveraging AI since 2014 to assess borrower creditworthiness, utilizing over 2,500 data points compared to the traditional FICO system’s five metrics. This innovative approach has led to a 115% increase in loan originations, totaling $11 billion in 2025, despite the stock experiencing a 40% decline at the start of this year.
The financial markets are taking notice as Upstart’s stock trades at a price-to-sales ratio of just 2.7, significantly below its three-year average of 5.7. Analysts expect continued revenue and earnings growth in 2026, with estimates suggesting a forward P/S ratio of 1.8. This presents a compelling opportunity for investors, especially as Upstart’s AI-driven model is expected to disrupt traditional lending practices.
As Upstart moves to secure a national bank charter, the potential for its stock to double by the end of 2026 appears plausible, driven by strong fundamentals and the promise of further innovation in the lending space.
Source: fool.com