The stock of e-commerce company Shopify (SHOP) jumped over 6% higher after Wells Fargo (WFC) raised its target price to $125 from $107 on Friday. This new target suggests about 12% upside potential from current levels. The bank believes Shopify could quietly become one of the biggest beneficiaries of the AI boom.
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Wells Fargo Sees Big AI Opportunity for Shopify
Wells Fargo called Shopify a “thematic AI story.” The firm said that though SHOP is not usually seen as an AI stock, there are clear signs the company is heading that way. It pointed to Shopify’s growing use of AI within its operations, new AI tools for merchants, and partnerships with major players like OpenAI, Meta (META), and Perplexity. The analyst believes that these initiatives could help Shopify make the shopping experience better for users and help sellers manage their stores with more ease.
Building on that view, Wells Fargo expects AI to bring major changes to e-commerce going forward. The firm believes AI will allow online stores to offer more personalized shopping, automate customer service, and better manage pricing and inventory. The analyst thinks Shopify is well-positioned to benefit from these changes.
Looking ahead, the firm sees strong growth in what it calls “agentic commerce,” where AI acts like a personal shopping assistant. Wells Fargo expects this space to expand quickly and reach $505 billion in sales by 2030. The analyst believes Shopify is in a good spot to capture a solid share of this market.
Overall, Wells Fargo sees Shopify as more than just an e-commerce company. With the company’s strong focus on AI, the firm views it as a smart, long-term bet in the AI space.
Is SHOP a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SHOP stock based on 26 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SHOP price target of $113.44 per share implies 1.82% upside potential.
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