Fintech names are rebounding at midday Wednesday. SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) stock is up 6% to $18.66, Upstart Holdings (NASDAQ:UPST) stock is up 8% to $31.58, and Affirm Holdings (NASDAQ:AFRM) stock is up 7% to $78.55.

SoFi's diversified revenues, stronger profitability and deposit funding give it an edge over Upstart, despite its richer forward sales valuation.

Upstart NASDAQ: UPST CEO Paul Gu said the company is entering a “second leg” of its development, focused on converting its artificial-intelligence lending platform into sustained profitable growth while expanding into secured credit products.

The artificial intelligence (AI)-driven lending landscape has gained momentum as financial institutions increasingly turn to technology to improve credit underwriting, expand borrower access and manage risk. Pagaya Technologies Ltd.

Is the AI lender starting to turn the corner?

Upstart stock is down almost 35% this year, but investors might be too pessimistic.

Upstart Holdings, Inc. (UPST) Presents at Bank of America SMID Cap Virtual Conference Transcript

Upstart (NASDAQ: UPST - Get Free Report) and Enova International (NYSE: ENVA - Get Free Report) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations. Institutional and Insider Ownership 63.0% of Upstart shares

High interest rates and concerns about software-as-a-service stocks in the agentic AI era have weighed on Upstart stock. Upstart delivered solid performance in the second quarter, with a 42% year-over-year increase in revenue and positive net income.

Upstart delivered strong Q2 results with 50% YoY originations growth and 42% revenue growth, returning to GAAP profitability. I maintain a "Neutral" rating on UPST, citing valuation compression as investors compare it to traditional lenders despite its AI-driven underwriting. Management reaffirmed $1.3 billion revenue guidance and a 21% adjusted EBITDA margin for 2026, targeting 35% annual revenue growth over three years.