12 Best AI Stocks to Invest in According to Reddit

4. SoFi Technologies Inc. (NASDAQ:SOFI)

Number of Hedge Fund Holders: 43

SoFi Technologies Inc. (NASDAQ:SOFI) is a financial services company with a focus on AI-driven solutions. Its platform includes lending, banking, and investing, and utilizes AI for personalized financial management through features like robo-advisory and AI-powered financial tracking. It also provides AI-enhanced technology platforms to other financial institutions for intelligent financial experiences.

The company’s AI-driven financial platform focuses on personalized experiences. In 2024, the company reached over 10 million members, which was up 34% year-over-year. It added 1.1 million products in Q4, with 89% from Financial Services. This platform uses AI to recommend products and streamline transactions. The AI-enhanced Financial Services segment saw Q4 revenue of $257 million, which was up 84%. The Financial Services Productivity Loop uses AI to increase cross-selling, with 30% of new products from existing members.

AI also powers the company’s lending platform (LPB), which originated $2.1 billion in 2024. AI-driven underwriting aids partnerships and generates fee income. SoFi Technologies Inc. (NASDAQ:SOFI) launched an AI-powered RoboAdvisor which is a financial planning service that provides investment advice and portfolio management with the aid of AI.

The company’s strong Q4 performance, which was driven by customer growth, new revenue streams, and favorable market conditions, positions it for continued growth and margin expansion. Patient Capital Management stated the following regarding SoFi Technologies Inc. (NASDAQ:SOFI) in its Q4 2024 investor letter:

“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like SoFi Technologies, Inc. (NASDAQ:SOFI) and Coinbase Global Inc. (COIN) during the year. Both companies rebounded strongly in the fourth quarter.

Sofi Technologies Inc. (SOFI) was a standout in the quarter, climbing 95% and up 156% from the intra-day lows in June. The company benefited from Fed rate cuts and the market’s growing optimism that the economy will avoid a recession. The company continues to grow its customer count while successfully cross selling into their loans and financial service products. In the quarter, we saw the company take on a new revenue stream by originating loans for third parties, creating an attractive balance sheet-light revenue source, helping improve return on equity and margins. Sofi is early in its life cycle, currently being a small player in a very large total addressable market (TAM). With their strong management team, we believe the company will continue to deliver on their guidance of strong growth and expanding margins.”