Upstart had a crazy run during 2021 when UPST shares soared as high as $400. The company experienced a loan volume downturn due to higher interest rates and slashed forward guidance for the rest of 2022.

That doesn’t mean Upstart stock isn’t a good buy at these current levels. I added Upstart to my list of millionaire maker stocks by 2030 because I believe AI lending is the future of the credit & loan industry.

Banks will utilize AI technology to provide higher loan volume without increasing risk. That’s good news for borrowers who need loans to fund small businesses, purchase homes, buy cars, or pay for higher education.

Where Will Upstart Be in 5 Years?

By 2027, Upstart should experience a surge in loan volume and increase its bank partners to new highs. The company is extremely dependent on lower interest rates to grow its revenue and I expect the Fed to curb interest rate hikes in 2023 once inflation is under control.

More bank partners + higher loan volume = bigger profits for Upstart. More than 2/3 of loans on the Upstart platforms are approved automatically and the process is fully automated.

That means lower interest rates will send UPST stock soaring to new highs but it could be a bit tough in the short run for Upstart shareholders.

Upstart has a 3-year annual revenue growth rate of 89% and continues to increase its banking partners and total customers served.

If Upstart’s revenue grows around 50% over the next 5 years then the company could hit $3.7 billion in annual revenue by 2027. Upstart may hit a total market cap of $60 billion in the same time frame.

That’s about 30x from the current stock price or $750 per share of UPST.

AI Lending Is the Future

AI technology is coming soon than we think and companies like Upstart are early in the artificial intelligence race.

Image a world where credit scores become obsolete and borrowers have a fair shot at receiving a loan regardless of their race, color, or background.

Banks will be forced to partner with Upstart if they want to maintain strong loan volumes. As Upstart grows in size, the company could focus more on growing auto & student loan volumes to drive more revenue & earnings.

Should You Buy Upstart Stock?

Upstart is a high risk, high reward stock that got crushed once the Fed lowered interest rates. UPST shares trade at a Price to Sales ratio of 2 and look extremely undervalued now.

Warren Buffet said “Be Greedy when Others are Fearful” and I believe now is the time to take a serious look at UPST while the stock is down nearly 90%.