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BofA Calls Open AI News a Positive for Walmart Inc. (WMT)

Walmart Inc. (NASDAQ:WMT) is one of the best stocks that will always grow.

The Information reported on March 4 that OpenAI is scaling back its plan aimed at introducing direct shopping inside ChatGPT. Following this release, BofA said on March 6 that it views the OpenAI news as a net positive for Walmart Inc. (NASDAQ:WMT), stating that the change has the potential to bring about an integrated commerce solution resembling the company’s previously announced partnership with Google’s Gemini in January. The firm reiterated a Buy rating on Walmart Inc. (NYSE:WMT) with a $150 price target on the shares, adding that once the company’s own platform “Sparky” is integrated within the platform, it should have an advantage showing up in searches, given its elaborate product assortment and low pricing.

Previously, BofA reinstated coverage of Walmart Inc. (NASDAQ:WMT) on February 27 with a Buy rating and a $150 price target, stating that the company is continuing to gain share with upper-income consumers through faster delivery offerings. It added that Walmart Inc. (NASDAQ:WMT) is also serving lower-income consumers with everyday low pricing, and thus BofA believes that an acceleration in profit growth and continuation of consistent sales growth should result in further positive EPS revisions, allowing the multiple to “grind higher.”

Walmart Inc. (NASDAQ:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, from general merchandise and electronics to food, groceries, and more.

While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about this cheapest AI stock.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

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  • 140 Metas
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  • 65 Microsofts
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