20 Fintech Stocks Riding the AI Wave Higher

15. Affirm Holdings, Inc. (NASDAQ:AFRM)

Number of Hedge Fund Holders: 34

Affirm Holdings, Inc. (NASDAQ:AFRM) is a prominent fintech company providing innovative payment solutions across the U.S., Canada, and internationally. Its platform allows consumers to make point-of-sale purchases with flexible payment options, while offering merchant commerce solutions and a consumer-centric app. What classifies Affirm Holdings, Inc. (NASDAQ:AFRM) as a fintech leader is its ability to integrate cutting-edge financial technology that facilitates easier transactions and provides convenient financing options to consumers. Recently, the company’s focus on leveraging AI-driven advancements has placed it at the forefront of fintech firms riding the AI wave.

One of Affirm Holdings, Inc. (NASDAQ:AFRM) most notable AI-related developments is its partnership with Apple Wallet, which was launched in mid-September. This integration taps into Apple Pay’s high-income user base, aligning Affirm with wealthier, tech-savvy consumers. The strategic use of AI-driven payment technology, alongside Affirm Holdings, Inc. (NASDAQ:AFRM) robust underwriting capabilities, positions it to scale its operations more efficiently and personalize customer offerings. Morgan Stanley analysts upgraded Affirm’s rating from “underweight” to “equal-weight” and raised their price target to $37 from $20, citing the company’s AI-driven initiatives as a significant growth catalyst. The analysts believe that the company’s partnership with Apple could add $2 billion in incremental transaction volumes by FY26, substantially higher than prior estimates.

Affirm Holdings, Inc. (NASDAQ:AFRM) pivot towards attracting affluent customers is underpinned by its focus on providing 0% promotional financing and lower interest rates. These offerings, enabled by advanced AI algorithms that analyze consumer behavior and financial standing, allow the company to provide more competitive pricing. The shift towards appealing to high-income consumers is expected to result in higher engagement, furthering Affirm’s growth trajectory. Additionally, easing regulatory pressures in the Buy Now, Pay Later (BNPL) space provide Affirm with a clearer regulatory landscape, helping it focus on strategic initiatives.

In its recent earnings call, the company reiterated its technological focus, including AI advancements, to optimize both consumer experiences and merchant partnerships. As Affirm Holdings, Inc. (NASDAQ:AFRM) leverages AI for operational improvements and scaling, analysts project further upward revisions, especially with the next earnings report set for November, which could highlight additional progress.