We recently published a list of the 12 Best AI Stocks to Invest in According to Reddit. In this article, we are going to take a look at where SoFi Technologies, Inc. (NASDAQ:SOFI) stands against other AI stocks to invest in according to Reddit.
Jensen Huang had previously estimated that practical quantum computing would be 15 to 30 years away, but he recently revised this timeline to 5 to 15 years. This shift reflected the company’s growing interest in quantum, which is likely influenced by recent relevant milestones in the tech sector, particularly the MAG7. These advancements focus on error correction and reducing noise in quantum chips, which is crucial for scaling quantum computers effectively. Jack Hidary, SandboxAQ CEO, joined CNBC’s ‘Power Lunch’ on March 20 to discuss his takeaways from these advancements. Hidary emphasized that the future lies in integrating GPUs with quantum computing rather than choosing one over the other.
Jack Hidary’s perspective on AI focuses on its transformative impact and the shift from consumer-focused applications to business-driven innovations. The conversation on CNBC highlighted that while technologies like flying cars and supersonic air travel have long been discussed without becoming adopted or profitable, AI is rapidly advancing and is poised to deliver tangible results. Over the past two years, consumer AI tools like ChatGPT have dominated attention, which users to generate essays, emails, and summaries with simple prompts. However, Hidary emphasized that the next phase of AI development will center on B2B applications, which he believes will drive profound changes across industries. According to him, B2B AI has the potential to revolutionize sectors such as pharmaceuticals by enabling the development of new medicines and diagnostics. In energy, AI can help optimize hydrocarbon value chains and create higher-value products. In automotive manufacturing, AI is being used not only for autonomous driving but also for lightweight vehicles and improving product designs.
Hidary stressed that this shift toward B2B AI represents a significant economic impact, as it addresses 80% of GDP compared to the limited scope of consumer AI. He views this transition as a pivotal moment for AI’s integration into critical industries, which promises substantial advancements in technology and economic growth in the coming years. Through these developments, Hidary envisions AI becoming a cornerstone of innovation across multiple domains, reshaping how businesses operate and deliver value.
Our Methodology
We first sifted through relevant threads to compile a list of the top AI stocks. We then selected the 12 AI stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A professional banker shaking hands with an entrepreneur in a boardroom setting.
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 (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.”
Overall, SOFI ranks 4th on our list of the best AI stocks to invest in according to Reddit. As we acknowledge the growth potential of SOFI, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOFI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
