Fintech stocks are emerging as a strong discounted play for investors at a time when geopolitical uncertainty is forcing markets lower. With concerns over high valuations in the AI landscape, finance technology is fast emerging as a high-value sector to buy into. 

The S&P 500 has recaptured its lost momentum after an initial 7% downturn following the flare-up of conflict in Iran, but doubts still remain over the AI ambitions of the Magnificent Seven, and other stocks that have driven the index higher in recent years. 

"If the first half of the year was dominated by tariffs, the second half was all about a particular type of tech: Artificial Intelligence (AI)," noted a Wealthify review of 2026. "As AI's capabilities skyrocketed, so too did the share prices of its biggest companies."

"And, while this came as good news for investors with a piece of that pie, fears of an AI bubble also dominated headlines. With spend and valuations at record highs, there were – and still are – concerns about this AI boom being a case of short-term overheating (where share prices exceed their true value)."

With investors becoming increasingly wary of AI valuations, fintech could offer a value play as an emerging industry that hasn't experienced the same furore as artificial intelligence. 

Fortune Business Insights has projected the global fintech market to reach a value of $1.76 trillion by 2034, representing a CAGR of 18.2%. But which stocks are best positioned today to deliver long-term portfolio growth into the future? Let's take a look at three key considerations: 

1. Nu Holdings (NU)

In terms of long-term potential and the sheer size of its addressable market, Nu Holdings (NYSE:NU) is a fintech stock that deserves attention. 

The challenger bank dominates Brazil, where 62% of the adult population is a customer. Nu is also significantly growing its presence in Mexico and Colombia and is in the regulatory approval process in the US, with plans to begin building a presence next year. 

Between 2022 and 2025, Nu Holdings reported annualized revenue growth of 50%, and its customer base grew by 76% during that time, swapping a net loss of $9.1 million for a net income of almost $2.9 billion. 

Given that the Latin American fintech giant is recording an average revenue per active customer of $15, a figure that's 1,775% higher than the 80 cents it costs to serve them, there may be no better stock in the financial sector with as much long-term potential as Nu. 

2. SoFi (SOFI)

It's been a challenging start to the year for SoFi (NASDAQ:SOFI), with the stock sinking more than 46% from its November peak, but this fintech is well-positioned to shake off its setbacks with a far more sustainable market cap of $21 billion and a strong innovation pipeline. 

The company anticipates a 30% revenue growth and 34% EBITDA growth by 2026. However, there are some severe concerns over accusations of account abuse and unrecorded debt for SoFi, which has been a driver of its recent market decline. 

Given that SoFi disputes the allegations from short seller Muddy Waters, it's reasonable for investors to believe that clarity on the issue could be a springboard for a major market recovery, making this stock one to track if you're looking for a strong discounted option. 

3. Robinhood (HOOD)

One of the biggest reasons for investors to be optimistic about Robinhood is that Wall Street icon Cathie Wood has reignited her interest in the stock, which had sunk nearly 50% from its Q3 2025 highs. 

Wood's investment firm, ARK, purchased 553,892 shares of Robinhood on April 29, valued at approximately $39.4 million to $39.7 million, indicating a strong turnaround in interest for the renowned investor. 

As a crypto-facing stock, HOOD struggled at the beginning of 2026 following a difficult period for Bitcoin and the wider cryptocurrency ecosystem, which failed to draw in investors who instead have been flocking to commodities like gold and energy stocks as geopolitical uncertainty continued to disrupt market growth. 

With Robinhood's Q1 2026 results showing revenue misses that fell $100 million below their $1.7 billion analyst consensus, the stock suffered further investor sell-offs. 

However, HOOD's quarterly results also showed that the platform remained profitable, with net income climbing to $346 million, up 3% year-over-year. This shows a resilience that many other crypto firms have struggled to find during quiet market periods. 

As a result, Robinhood represents a strong play for investors who remain bullish on the future of cryptocurrencies and their role in the fintech landscape. 

Embracing Fintech Resilience

As the conflict in the Middle East continues to have an uneven impact on markets, the relatively low valuations in the fintech landscape could help to deliver a greater level of resilience compared to mega-cap AI stocks. 

Although fintech isn't a safe-haven investment option, the sector can produce healthy returns over the long term with exceptionally strong industry growth projections to support portfolios. 

At a time when the AI boom is creeping further into uncertain terrain, it's certainly worth looking more to fintech stocks to add at a fair value price.

Disclosure: On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer. Dmytro Spilka does not intend to make a trade in any of the securities mentioned above in the next 72 hours.

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