Upstart is a deeply undervalued credit AI infrastructure platform with immense profitable revenue growth

Upstart is a fully automated AI company with immensely deep value and profitable revenue growth

I last made an AMD post 3 months ago before it went parabolic in ValueInvesting, highlighting that AMD has a .7 peg ratio, stating AMD was the best value and growth stock, since then AMD almost tripled from the price.

Upstart is in a similar boat to AMD was in 2024, where the company is completely discounted from relevance, and has a .21 peg ratio currently. Meanwhile Upstart has reiterated insanely bullish guidance for 35% cagr with 21% ebitda guidance for the next 3 years.

Upstart’s Market cap is currently 2.75 billion with immense room to grow. Upstart is a B2B2C, with Loan applications hitting record highs.

Their ai model fully automates 90% loans with 5x risk separation with 43% more approvals than fico. Banks are increasingly relying upon upstart as their partner to make loans safety and with higher volume.

Upstart also Applied for a bank charter which will further reduce costs and provide flexibility with \\\~2028 approval.

Upstart is unprecedented deep value for an AI company at just .21 peg ratio.

Long term, Upstart has legitimate 10x+ potential, and will triple - quadruple in less than 2 years from baseline execution, not to mention bank approval. The demand for an edge in lending will increase other lenders reliance on upstart.

They have 4B in committed capital recently, and a previous lender renewed and increased the amount. Former ceo retired, promoted the ml engineer founder to ceo, and just bought 5 million worth of stock last week at $31. The stocks trading at $28.7 atm. The current ceo bought 4m worth back in February at $39.31.

The AI advantages that upstart has gives it a decade lead over others. This is a future sp500 company in the making, and ceo Paul Gu has stated clearly he is looking to maximize shareholder value.

TLDR: intrinsic value is almost 3x lower than it will be in just 1.5 years. I’ve bought in this week after their latest earnings reiterated guidance. Growth is being prioritized, and the company has made it clear they’re looking to increase stock price with share buybacks as recent as $31. The shares have 33% short interest even while the company and founders keep buying back shares.

Revenue goals are to 10x, and their AI automation advantages will make Upstart highly profitable.