Artificial Intelligence Stocks Set to Generate Wealth for Two Million Individuals
In the ever-evolving world of technology, two companies are making significant strides in their respective industries: Upstart Holdings (UPST) and Sweetgreen. Both companies are leveraging artificial intelligence (AI) to optimize their operations, but their growth potential and market context differ significantly.
Upstart, a lending platform, is making waves in the financial technology sector. The company uses AI in its credit-scoring models, a departure from traditional methods. In the first quarter of 2025, Upstart reported a remarkable improvement in its net loss under GAAP, with a reduction from $64.6 million to a mere $2.4 million. Moreover, 92% of Upstart's loans were fully automated, a new record for the company. The company's AI-driven platform also helped improve conversion rates, which rose from 14% to 19.1% in the same quarter.
Upstart's first quarter revenue in 2025 increased by 67% year over year to $213 million. The company's focus on automation and AI has positioned it for rapid growth, especially considering the total addressable market for the loans it competes for is estimated to be a staggering $3 trillion. Upstart Holdings currently has a market cap of $8 billion, reflecting investor confidence in its potential.
On the other hand, Sweetgreen, a fast-casual restaurant chain, is integrating AI into its kitchen and supply chain systems. The aim is to optimize operations and enhance customer experience. The chain's Infinite Kitchen system has reported at least 7 percentage points in labor savings and a 1 percentage point improvement in cost of goods sold. One Sweetgreen restaurant saw a 15% increase in comparable-store sales (comps) on digital lines due to the Infinite Kitchen.
While Sweetgreen's AI applications aim to make incremental improvements in operations, Upstart's AI-driven platform is transforming a large, lucrative market. Given the valuations of more established chains like Chipotle, a 10x gain over time is reasonable for Sweetgreen if it executes well on its growth plan. However, the growth potential tied to AI for Sweetgreen is generally viewed as more incremental compared to the financial technology disruption driven by Upstart.
In summary:
| Company | AI Application | Growth Potential | Market Context | |-----------------|-------------------------------|-----------------------------------------|------------------------------------------------| | Upstart (UPST) | Automated loan decision system| High, due to addressable market and AI efficiency | Competes in large lending sector; rapid growth prospects | | Sweetgreen (SG) | Automated kitchen and supply chain systems | Moderate, incremental improvements in operations | Focused on food service; AI enhances efficiency rather than disrupts |
Upstart's AI-driven loan system fundamentally transforms a large, lucrative market, suggesting higher long-term growth potential compared to Sweetgreen, whose AI use optimizes but does not fundamentally alter a more mature industry.
[1] Market valuation as of mid-2025, based on publicly available data.
- The financial technology company, Upstart Holdings (UPST), is leveraging artificial intelligence (AI) in its credit-scoring models, transforming a large, lucrative market with its high growth potential.
- In the same vein, Sweetgreen, a fast-casual restaurant chain, is incorporating AI into its kitchen and supply chain systems, aiming for incremental improvements in operations within the food service industry.
- Upstart Holdings' market cap of $8 billion in mid-2025, as well as its reported 67% year-over-year revenue increase, reflects investor confidence in its potential for rapid growth in the lending sector.
- Although Sweetgreen's AI applications could potentially result in a 10x gain over time, given the valuations of established competitors like Chipotle, its growth potential tied to AI is generally considered more incremental compared to the financial technology disruption driven by Upstart.
