August saw significant jumps in several AI-related stocks including another strong month from a company on the list for a second straight time. Let's dive into the top 5 performers from our Best AI Stocks watchlist and explore the catalysts behind their impressive gains.
5. Upstart Holdings, Inc. (UPST)
Opening Price: $28.00
Closing Price: $42.50
Percentage Gain: 51.79%
Catalyst: Upstart, a leading AI lending platform, saw its stock price surge after reporting better-than-expected Q2 2024 financial results and providing strong Q3 guidance. The company's performance demonstrated significant improvements in its business model and financial health.
Key factors driving the stock's rise include:
Q2 losses of $0.17 per share, beating analyst estimates by 56.41%
Revenue of $128 million, surpassing expectations by 2.78%
Q3 2024 revenue guidance of approximately $150 million, well above the $124.5 million estimate
Upstart's CEO, Dave Girouard, attributed the improvements to significant advances in the company's AI model, revitalized funding supply, and increased operating efficiency. The positive results and outlook led to analyst upgrades, with Citigroup upgrading the stock from Sell to Neutral and raising the price target from $15 to $33.
4. GDS Holdings Limited (GDS)
Opening Price: $11.21
Closing Price: $17.30
Percentage Gain: 51.9%
Catalyst: GDS Holdings, a leading developer and operator of high-performance data centers in China, saw a substantial increase in its stock price following the release of its Q2 2024 financial results. The company reported better-than-expected revenue and EBITDA, with a notable 14.3% year-over-year revenue growth to RMB2,826.4 million.
Key factors driving this performance include:
A 6.3% EBITDA beat compared to market expectations
Significant improvement in area utilization rates, expanding by 120 basis points year-over-year to 73.3%
Strong growth in international markets, with segment revenue surging by 690.2%
Improved financial leverage, with the net debt-to-EBITDA ratio declining from 7.7x to 7.2x
GDS also provided an optimistic outlook, expecting continued strong performance through 2025 driven by new deals with larger internet customers and their AI-related plans. The company's focus on international expansion and potential upward revision of capital expenditure guidance further fueled investor confidence.
3. CareDx, Inc. (CDNA)
Opening Price: $19.99
Closing Price: $30.73
Percentage Gain: 53.7%