Posted 12/30/2023, 6:15:00 PM
Microsoft, Amazon Back Hot AI Startups as Small-Cap Stocks C3.ai, Upstart Soar on Growth Potential
- Microsoft and Amazon made big investments in AI companies like OpenAI and Anthropic in 2023.
- Two small-cap AI stocks that saw gains were C3.ai (up 159%) and Upstart Holdings (up 217%).
- C3.ai provides AI services to companies and is transitioning to a consumption-based model, leading to accelerating revenue growth.
- Upstart uses AI for lending services and its stock crashed in 2022 but rebounded 217% in 2023 on growth potential as rates fall.
- Upstart aims to disrupt the $4 trillion US loan market and just entered the mortgage segment, representing a big opportunity.