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Is PayPal Holdings (PYPL) The Best Ecommerce AI Stock to Buy? Analyst Weighs In After OpenAI Deal

We recently published Top 9 AI and Non-Tech Stocks to Watch Amid Latest Earnings Season. PayPal Holdings Inc (NASDAQ:PYPL) is one of the top AI and non-tech stocks.

PayPal Holdings Inc (NASDAQ:PYPL) shares recently surged after the company signed a deal with OpenAI, after which ChatGPT users will be able to buy products using the payment firm’s platform.

Dan Dolev, Mizuho senior analyst, said in a latest interview on CNBC that research shows that Agentic AI could result in a 20% increase in ecommerce consumption.

“So the TAM is basically all of e-commerce, but we’ve seen some research that you could get like a 20% bump in e-commerce consumption because of Agentic AI. This is huge news for e-commerce overall, right? We’re talking about trillions of dollars, and it’s amazing news for PayPal Holdings Inc (NASDAQ:PYPL) because they’re part of that group.”

The analyst said that the fact that OpenAI chose PayPal Holdings Inc (NASDAQ:PYPL) shows the payments company’s “durability.”

“Not being there was the fear. So the fact is PayPal is there, and it’s there as one of the first few adopters of it. It’s great news. People that have written PayPal off or didn’t take that into account, we didn’t. We’re very bullish. And so the fact that they chose PayPal as a partner tells you a lot about PayPal’s durability.”

Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its third quarter 2025 investor letter:

“PayPal Holdings, Inc. (NASDAQ:PYPL) was a leading detractor in portfolios during the third quarter despite growing earnings per share +18% and growing adjusted transaction margin dollars +8%. The Company saw double-digit growth in their Venmo-branded revenue as they further expanded their monetization initiatives with merchants and consumers, including Pay With Venmo and the Venmo Debit Card. In addition, the Company has negotiated better economics with its high-volume processing segment, Braintree, which we expect should help accelerate revenue growth later this year and into 2026. Shares continue to trade at depressed multiples as the market has rotated into AI-focused tech and cryptocurrency-related financials. PayPal is being prudent with its investments in both those emerging areas of commerce, partnering with Google in agentic commerce solutions, and also expanding issuance and acceptance of PayPal U.S. dollar stablecoin.”

While we acknowledge the risk and potential of PYPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PYPL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

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.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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