3 Catalysts That Could Send Nu Stock Soaring This Year

Nu Holdings (NYSE: NU) is an exciting digital bank based in Brazil. Although the stock soared last year, it's dropped in 2026 and is down 22% year to date.

However, it might have bottomed out for the year, and it has several tailwinds that could send it higher. Here are three catalysts for Nu stock in 2026.

1. It's getting bank charters in Brazil and Mexico

Nu operates a financial app in Brazil, Mexico, and Colombia. It has 135 million users as of the end of the first quarter, 115 million of them in its home country, Brazil, where it's the largest private financial institution. It has become popular among mass users who are often closed out of the banking system in Brazil, which has high barriers to entry. It has released several products targeting more affluent consumers, and that segment is also growing.

Image source: Nu.

It has achieved this level of engagement and popularity, with more than half of the adult population in Brazil using the platform, without a full bank charter. Instead, it has operated as a payments, credit, financing, and investment company. Obtaining a full bank charter, which it has applied for, will let it offer more products and achieve greater stability, as it can operate all of its services under one umbrella instead of applying for various licenses and permits in different areas. Since it's getting closer to saturation among new users, this opens up an opportunity to cross-sell and deepen engagement with its existing user base.

It's also getting a bank charter in Mexico, where it still has just a fraction of the adult population at 15 million users.

2. It's getting a bank charter in the U.S.

Management has implied that it would continue to expand into new regions, and it recently received a conditional bank charter to operate in the U.S. It hasn't provided many details about this new venture yet, and it's still waiting for full approval from regulators. During the next 12 to 18 months, it needs to fully capitalize the bank in accordance with regulations.

Once approved, it plans to offer the full gamut of banking products, including deposit accounts, credit cards, and other lending products through its app. The U.S. population of 342 million is almost as big as the populations of Brazil, Mexico, and Colombia combined, providing a vast new market opportunity.

In March, it announced a partnership with soccer franchise Inter Miami CF and named its new stadium Nu Stadium. The company said that it's a "significant milestone in its international growth strategy and reinforces its long-term commitment to the United States," and the partnership is meant to build its brand as it gets started in the U.S.

Given its roots, it's likely to target the large Spanish-speaking population in the U.S. South. Management also said this is part of Nu's "global mindset," and more could be on the way.

3. It's using AI to make better lending decisions

Artificial intelligence (AI) is proving its value in many different areas, and one field where it's disrupting norms is in credit scoring. Upstart Holdings and Pagaya Technologies are both making waves as AI credit-scoring platforms, and Nu has its own foundation model called Nuformer that uses AI and machine learning to approve more borrowers without increasing risk. Its newest model reduced risk by 70% for the same population as previous models.

That drives financial inclusion, one of its missions, as well as increased revenue and improved credit quality, which has been an issue for investors recently. The company believes that its immense data store from its highly engaged users gives it an edge in identifying good borrowers, and there have already been tangible results.

In the 2025 fourth quarter, Nu posted a half-percentage-point increase in credit card purchase volume market share in Brazil, the highest absolute increase in the past 10 years for any bank. The credit book increased 40% year over year, and the write-off rate was steady at 2.8% to 2.9%. These are incredible results and could get even better.

Nu stock is on sale right now, but it could soar in the second half of the year.

Jennifer Saibil has positions in Nu Holdings. The Motley Fool has positions in and recommends Nu Holdings and Upstart. The Motley Fool recommends Pagaya Technologies. The Motley Fool has a disclosure policy.