Of all the artificial intelligence (AI) stocks, few are as trendy as Upstart (NASDAQ: UPST). Even though Upstart has only been on the market since 2020, it has been involved with two impressive run-ups, followed by a subsequent stock price decline. However, both of these declines are due to investors not understanding Upstart's business.

So, if you want to be an Upstart investor, here are three things you must understand.

Upstart's alternative credit approval software is a significant upgrade over a traditional FICO score. Instead of looking at a handful of factors, Upstart considers education level, employment history, financial status, and many other items to better understand an applicant's financial well-being.

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Source Fool.com