Fintech company Upstart (NASDAQ: UPST) uses artificial intelligence (AI) to assess borrowers' creditworthiness to help financial institutions make better loan approval decisions. The company has been making steady progress, but the ride has been all but steady for its investors.

Upstart did an initial public offering (IPO) at $20 a share in December 2020. By October 2021, it had reached $390, and a year later, it was back to around its IPO price. Fast-forward to the end of July, and the stock was around $72 and has surged about 425% this year.

AI hype has fueled a lot of Upstart's 2023 rally, causing some investors to be skeptical of its valuation and short the stock. However, does this negate Upstart's viability as a long-term investment option? Let's see.

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Source Fool.com