Shares in U.S. retail giant Walmart (WMT) were lower today despite being hailed as the hottest AI stock around.
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New Economy
In an article on the Axios website, Walmart is the darling of the so-called old-economy stocks that could be set for an “AI renaissance.”
“2026 may be the year of investing in companies benefiting from all this, and kind of sidestep AI a little bit in case there’s a house of cards,” Ken Mahoney, CEO of Mahoney Asset Management, told Axios.
That’s in reference to fears about overvalued AI tech stocks, concerns over their capital spending plans and uncertainty over demand.
While Mahoney said that 2025 was the year to “ride the wave” of AI, his plans for the next 12 months center on the “transition more toward companies that are going to benefit from implementing AI software.”
Mahoney said that Walmart is a prime example of a potential beneficiary of AI.
“It is not a growth name necessarily but AI can help the retailer with its inventory, logistics, software and more. Things that can really move the needle for a company of its size,” he said.
Prescient Investors
Nancy Tengler, CEO of Laffer Tengler Investments, agreed that Walmart is an “old-economy” stock that could win in the new AI world. “If you can produce more with less, that is making money,” she said.
Defense company RTX (RTX) is another old-economy name she likes, given how it is incorporating AI into its manufacturing process.
Mahoney added that if the tech rally falters then “investors sticking with the classic company names that embrace technology could end up looking prescient.”
Walmart, which releases Q3 earnings next week, has certainly been embracing AI this year.
Last month it partnered with AI firm OpenAI to bring AI into more parts of its retail experience. Customers can now shop at Walmart through ChatGPT by using a new feature called Instant Checkout. This builds on Walmart’s existing AI assistant, Sparky, and allows shoppers to start a conversation, find items, and complete their purchase in one smooth interaction.
Walmart is also installing numerous AI-powered Ranpak (PACK) AutoFill systems across its five Next Generation Fulfillment Centers. The aim is to speed up the fulfillment process for customers, reduce packaging waste, and simplify work for its staff.
Keeping pace with evolving innovation and technology is crucial for a retail stock like Walmart. That is why it is one of the key risks the company and investors need to be aware of – see above.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 28 Buy ratings. Its highest price target is $129. WMT stock’s consensus price target is $116.15, implying a 13.41% upside.
