20 Fintech Stocks Riding the AI Wave Higher

16. SoFi Technologies, Inc. (NASDAQ:SOFI)

Number of Hedge Fund Holders: 29

SoFi Technologies, Inc. (NASDAQ:SOFI) is a fintech company providing a wide range of financial services across the United States, Latin America, and Canada. SoFi’s operations are segmented into Lending, Technology Platform, and Financial Services, offering products such as personal loans, home loans, and investment services. The company’s involvement with AI sets it apart in the fintech industry. SoFi Technologies, Inc. (NASDAQ:SOFI) leverages AI-driven fraud detection in its technology platform, which powers services for both financial and non-financial institutions. AI is also integrated into SoFi’s transactional risk management systems, enhancing security for digital transactions.

Analysts maintain a positive outlook on SoFi Technologies, Inc. (NASDAQ:SOFI) stock, highlighting its potential for continued growth. Mizuho, for instance, retained an “Outperform” rating with a price target of $12, underscoring the company’s strong Q2 2024 performance, which helped counter many bearish arguments. Mizuho noted that sequential declines in personal loan delinquencies should help ease credit concerns. Analysts believe that as SoFi’s management continues to execute its strategy, bearish sentiments around the stock will eventually dissipate.

In its Q2 2024 earnings report, SoFi Technologies, Inc. (NASDAQ:SOFI) beat expectations with earnings per share (EPS) of $0.01634, exceeding the anticipated $0.01. CEO Anthony Noto discussed the company’s impressive growth, emphasizing its diversification and innovation. A significant part of SoFi’s success lies in its robust technology platform, which Noto described as being on track to become the “AWS of fintech.” The company’s technology segment, which includes Galileo and Technisys, saw revenue growth of 46% year-over-year, making up nearly half of SoFi’s adjusted net revenue.

Moreover, SoFi Technologies, Inc. (NASDAQ:SOFI) commitment to AI and technology is evident in its introduction of AI-powered features like transactional fraud detection and enhancements to its payment platform. These innovations are crucial as the company expands its role in fintech and financial services. SoFi’s advancements position it well within the broader AI landscape, allowing the company to solidify its fintech dominance.