Stocks to buy

3 Stocks AI Predicts Will Deliver 1,000% Gains by 2028

The hype around artificial intelligence continues to build as investors become more familiar with its capabilities. While AI is far from a crystal ball, it can be a valuable tool for identifying promising investment opportunities that may otherwise fly under the radar. Google’s (NASDAQ:GOOG, NASDAQ:GOOGL) Bard AI has proven particularly adept at stock picking, consistently outperforming rival AI models and even human experts in backtesting.

Intrigued by Bard’s aptitude for predicting outsized returns, I decided to leverage this technology to uncover three overlooked stocks that it believes can deliver 1,000% gains by 2028. Of course, I didn’t simply take Bard’s suggestions at face value. Once the AI pointed me in a promising direction, I conducted my own careful analysis of each pick, evaluating potential risks and rewards.

I aim to combine Bard’s computational screening abilities with old-fashioned human judgment and due diligence. AI excels at crunching vast datasets to surface insights we may miss. But evaluating an investment thesis requires nuanced reasoning no AI can match right now.

Remember, none of the following stocks are my own recommendations, even though I do have buy ratings on these stocks from many months ago. I will simply be providing perspective and commentary, using Bard’s argument as a base. If you want my own picks, I recommend you check out some of my other articles. Bard itself noted in its response, “Please note that these are just predictions from AI, and there is no guarantee that these stocks will actually achieve these gains.”

With that in mind, let’s start!

Lemonade (LMND)

Source: Piotr Swat /

Bard: Lemonade (NYSE:LMND) “is a homeowners and renters insurance company that uses artificial intelligence to underwrite and price policies. The company has been growing rapidly in recent years, and it is expected to continue to grow as more people adopt digital insurance products. AI predicts that Lemonade could reach a market capitalization of $100 billion by 2028, which would represent a 1,000% gain from its current market capitalization of $10 billion.”

Let’s put aside Bard’s messed-up numbers and look at the bigger picture. I agree that Lemonade has enormous long-term potential in disrupting the massive insurance industry. The company is still in hyper-growth mode, with revenue climbing from $67 million in 2019 to an expected $426 million this year. Unfortunately, losses are growing just as quickly, totaling $298 million last year.

With only $305 million in cash, Lemonade may have to rely heavily on share issuances to finance its cash burn. Therefore, I have doubts about the feasibility of reaching a $14.63 (1.33+1,000%) billion valuation in the next five years. The market rarely awards such high valuations to unprofitable companies lacking clear paths to profitability.

That said, Lemonade does have a unique value proposition with its AI-driven platform, targeting younger demographics that incumbents fail to engage. If the company can continue scaling while improving loss ratios, profitability could one day support a higher valuation. But it still seems like a stretch, and I would give LMND a “hold” rating at best right now.

Upstart Holdings (UPST)

Source: T. Schneider /

Bard: Upstart Holdings (NASDAQ:UPST) “is an artificial intelligence lending platform that provides personal loans to borrowers with non-traditional credit histories. The company’s AI underwriting model is able to approve more loans and at lower interest rates than traditional lenders. Upstart is expected to disrupt the personal lending market and reach a market capitalization of $50 billion by 2028, which would represent a 1,500% gain from its current market capitalization of $3.3 billion.”

I was bullish on Upstart earlier this year, with shares trading around the $14 level, thanks to its innovative underwriting models and massive addressable market. However, my outlook has become more cautious amid volatility in credit markets.

Of course, Upstart itself possesses a solid business model when credit conditions normalize. Its AI models approve loans faster and at better rates than traditional lenders. Revenue also grew explosively until 2022, when originations slowed. However, I believe the company’s growth rate should recover in calmer markets.

Indeed, today’s challenging credit environment creates unpredictable near-term headwinds. Banks have retrenched to shore up liquidity and capital. These cyclical economic impacts make modeling Upstart’s growth over a 5-year horizon exceptionally difficult.

Therefore, while I remain bullish over the long-term on Upstart from a fundamental perspective, I believe risks likely outweigh potential rewards over the next 12-18 months. Until underlying the health of the consumer and lending activity improves, I expect continued volatility that may provide better entry points down the road. Of course, Upstart could still generate outstanding returns for patient investors once macro conditions normalize. But anticipating a 1,000% upside amidst current uncertainties seems overly optimistic.

UiPath (PATH)

Source: dennizn /

Bard: UiPath (NYSE:PATH) “is a robotic process automation (RPA) software company that provides software that can automate repetitive tasks. The company’s software is used by businesses of all sizes to improve efficiency and reduce costs. UiPath is expected to become the dominant player in the RPA market and reach a market capitalization of $100 billion by 2028, which would represent a 1,000% gain from its current market capitalization of $10 billion.”

I also don’t fully agree this stock offers potential 1,000% returns. But I am more confident projecting massive gains for UiPath versus Lemonade and Upstart.

The difference lies in UiPath already sporting a solid business model and a clear path to profitability. Last quarter, the company delivered 24% revenue growth and 13% operating margins. The company now expects to produce more than $250 million of free cash flow this year. Unlike many AI software firms, UiPath generates profits by providing essential automation tools rather than speculative language models.

UiPath operates in a vast RPA market that could be worth over $66 billion by 2032 at a 38% compounded annual growth rate (CAGR), promising durable double-digit growth. Its net retention rates are at 123% with current customers.

In my view, these sustainable fundamentals support a reasonable upside if execution continues. That’s especially true as UiPath penetrates more complex markets.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.