Neha Gupta

Sat, March 21, 2026 at 6:51 AM EDT 2 min read

Klarna Group plc (NYSE:KLAR) is one of Harvard University’s top AI stock picks. On March 5, Morgan Stanley reiterated an Equalweight rating on Klarna Group plc (NYSE:KLAR) with a $16 price target. The bullish stance is in response to the company reiterating that it is pivoting more toward a spend-centric rather than a lending-centric model.

While consumers’ spending power remains strong and funding markets remain constructive, Morgan Stanley expects the company to benefit from total merchandise volume acceleration. The company has already confirmed that its banking app boasts 9 million daily active users. It also boasts of a 53% increase in daily engagement levels compared to the previous year.

Klarna has already inked a strategic collaboration, paving the way for the integration with Stripe. The integration will enable AI agent-driven shopping experiences to support its flexible payment options. In addition, it will enable automated checkout flows for US merchants using Stripe’s Shared Payment Tokens.

Klarna Group plc (NYSE:KLAR) is a global fintech company and licensed bank that provides Buy Now, Pay Later (BNPL) payment services, flexible payment options, and shopping tools for consumers and merchants. It has adopted an “AI-first” strategy, integrating artificial intelligence deeply across its customer service, product development, and internal operations to improve efficiency and reduce costs.

While we acknowledge the potential of KLAR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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