Beyond Nvidia: The AI Stocks to Watch
As artificial intelligence continues to reshape industries, Nvidia has risen to become one of the globe’s largest companies, boasting a market capitalization of $3.6 trillion. Its dominance stems largely from supplying top-tier data center chips critical for AI development. However, savvy investors are looking beyond Nvidia, eyeing companies like C3.ai and Upstart as potentially lucrative opportunities in the expanding AI landscape.
C3.ai: A Custom AI Powerhouse
C3.ai specializes in providing businesses with tailored AI solutions, boasting over 130 ready-made applications designed to streamline and accelerate the integration of AI into various industries, including finance, retail, and manufacturing. What makes C3.ai particularly appealing is its agility; it can deliver custom applications within three months of kickoff.
Expanding the Horizon with Agentic AI
Recently, C3.ai has ventured into agentic AI, creating a platform for businesses to deploy virtual assistants that can analyze data and automate workflows. This versatility connects to more than 200 third-party services, allowing organizations to harness valuable data efficiently. Market insights predict that the sector for "digital labor" could escalate to an astonishing $12 trillion, placing C3.ai on the brink of a spectacular growth opportunity.
Upstart: Redefining Credit Scoring
Upstart is challenging traditional credit assessment methodologies with an innovative, AI-driven approach. Departing from reliance on the conventional FICO score—often criticized for its limited data scope—Upstart’s algorithm evaluates over 2,500 data points per applicant. As a result, the company can grant more loans at lower interest rates—more than double compared to traditional methods—while maintaining a robust risk profile.
A Rapidly Growing Market Presence
The AI lending platform, primarily focusing on unsecured personal loans, has shown remarkable growth, with $213 million in revenue for the first quarter of 2025, marking a 67% year-over-year increase. Upstart’s automation touches 92% of its loan approvals, streamlining the process for applicants and enhancing efficiency.
CEO Dave Girouard believes that $25 trillion worth of loans are originated globally each year, potentially generating $1 trillion in fee revenue. His vision sees AI completely transforming credit assessment in the next decade, positioning Upstart favorably for immense growth.
Investing Insights
Currently, both C3.ai and Upstart have seen their stock prices decline significantly from previous highs—down 85% and 84%, respectively—after experiencing substantial overvaluation during the tech boom of 2020. C3.ai’s price-to-sales ratio has corrected from a staggering 80 to a more accessible 7.8, suggesting a potential undervaluation now that many investors might want to capitalize on.
While both companies present compelling narratives for growth, it’s essential to consider where they stand relative to other investment opportunities. The Motley Fool recently highlighted a selection of 10 stocks that may outperform both C3.ai and Upstart in the coming years.
Conclusion
As artificial intelligence continues to evolve, C3.ai and Upstart exemplify the dynamic landscape of AI-driven innovation. Their unique approaches to solving industry challenges present viable investment opportunities for those willing to look beyond the tech giants. With the potential for robust growth on the horizon, these companies could very well be part of the AI revolution that shapes the decades to come.
Writes about personal finance, side hustles, gadgets, and tech innovation.
Bio: Priya specializes in making complex financial and tech topics easy to digest, with experience in fintech and consumer reviews.