New Price Targets for the 3 Hottest AI Stocks
Upstart, SoundHound AI, C3.ai are raking in big gains for investors. Here's where I expect each stock to go.
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This bull market is being dominated by big tech companies. But while mega-cap stocks are stealing the headlines, there are pockets of strength in other areas of tech.
One of the hottest of these areas is artificial intelligence, or AI. AI is a sector that barely registered just a few years ago, and is now a daily topic of discussion.
Let’s view the charts of some of the hottest names in the AI sector, to see where they’re headed next.
Upstart Holdings
Upstart Holdings UPST is both AI and fintech. The vast majority of the company’s loan applications are handled via AI, which gives Upstart a competitive advantage by lowering costs.
Back on April 23 (black arrow), I wrote that Upstart was due for a bounce. That day, the stock opened at $45 per share. On Wednesday, the San Mateo, California-based company closed above $78 per share, for a gain of 73% in less than three months.
Where is Upstart headed next? The year-to-date high of $96.43 is an obvious choice (black dotted line), and a rally to that level would generate a gain of about 23% from Wednesday’s closing price.
The good news is, that resistance level isn’t impressive or imposing. While $96 is my new official target price for Upstart, I wouldn’t be surprised if the stock handily exceeds that level.
C3.ai
In the same article that contained the endorsement for Upstart, I also recommended C3.ai Inc. AI. While C3.ai hasn’t performed as well as Upstart, the Redwood City, California-based enterprise AI software provider has managed to climb by 33% since that recommendation (black arrow).
On Wednesday, C3 traded at a one-month high, but the stock is struggling to break above its 200-day moving average (red). The stock’s momentum should carry it past that obstacle, and on to its next resistance level, just below $36 (black dotted line). That figure represents a potential gain of an additional 33%.
SoundHound AI
SoundHound AI SOUN produces AI software that can be used to create conversational voice assistants. The software has gained traction, especially in the area of customer service.
We finally bought shares of the Santa Clara, California-based company on April 25. At that time, the stock had just climbed above its 50-day (blue) and 200-day (red) moving averages. Since then, the stock has advanced by about 38%.
The next stop for SoundHound is $17.65 (black dotted line). A rally to that resistance level would fill a gap left behind from January 27 (circled), and represents a potential gain of 36% from Wednesday’s closing price.
At the time of publication, Ponsi was long UPST, AI, and SOUN.
