(WMT), (MSFT), (AMZN), (NVDA), (META), (AAPL), (GOOGL), (TSLA)
Ah, the burning question on every savvy investor's mind: What's catapulting the stock market to such dizzying heights? Look no further than artificial intelligence (AI).
It's the secret sauce, the magic ingredient, the... well, you get the picture.
The current euphoria in the stock market owes a considerable debt to the AI revolution sweeping through industries far and wide.
Enter the "Magnificent Seven" – Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Meta Platforms (META), Apple (AAPL), Alphabet (GOOGL), and Tesla (TSLA). These stocks are leading the charge in the AI revolution.
Yet, lurking in the shadows, beyond this illustrious ensemble, is a behemoth not often sung in the AI choruses.
Valued at a staggering $496 billion, this giant is weaving AI into its fabric in ways not immediately apparent to the untrained eye.
Cue the drumroll for Walmart (WMT), the unlikely AI contender.
Now, before you cry foul, claiming Walmart is anything but an AI pioneer. The reality is far more nuanced and, dare I say, fascinating.
Long before ChatGPT became a household name, sparking an inferno of interest in large language models, Walmart was quietly laying its AI foundations. The retail titan has been leveraging AI to fine-tune its supply chain, ensuring that sales demand predictions are spot-on and its fulfillment centers are models of high-tech efficiency.
But wait, there's more. Walmart has recently embraced generative AI, adding an advanced layer to its online shopping experience.
Imagine typing, "Help me gather supplies for a new baby," and voilà, you're presented with a curated list of everything you need, courtesy of Walmart's generative AI shopping assistant.
Impressive, right?
Moreover, Walmart's customer service has been revolutionized by AI, with chatbots equipped with natural language understanding capabilities addressing millions of customer queries since 2020, significantly reducing the need for human intervention.
The retailer's "Ask Sam" voice assistant further aids employees in locating products, checking prices, and more, all with a simple voice command.
The clincher? Walmart is not just utilizing AI internally; it's commercializing its AI route optimization technology, offering other businesses a slice of its AI pie. This technology promises to streamline driving routes, ensure trailers are packed efficiently, and minimize miles traveled.
The question then begs, what do you call a company that develops and markets its own AI technology? An unequivocal AI stock, in my book.
While Walmart may not rub shoulders with the "Magnificent Seven," its splendor lies elsewhere. With a revenue haul of $648 billion last year, Walmart outpaced all members of this elite group, showcasing its sheer scale and financial muscle.
Admittedly, Walmart's profit margins don't quite match up to those of its mega-cap growth stock counterparts, but it still outperformed Tesla in terms of profits in 2023.
And how has Walmart's stock fared, you ask? With a rally of over 30% in the past year, it has left behemoths like Tesla and Apple in its wake, making a compelling case for its financial robustness.
Even when it comes to valuation, Walmart presents a more tempting proposition than most of the "Magnificent Seven," trading at 26 times forward earnings, a bargain in comparison to the lofty valuations of Amazon, Apple, Microsoft, Nvidia, and Tesla.
So, is Walmart the AI stock you should be betting on?
If you're looking for a quick trip down the stock market aisle, Walmart might not be the flashiest pick. But for marathon investors with an eye on long-term value, Walmart deserves a spot on your shopping list.
Walmart isn't just a staple in the ever-expanding grocery list of AI investments; it's a key ingredient driving the future of retail and beyond. For those looking to check out the future, Walmart offers a unique blend of innovation, stability, and long-term growth potential that's worth adding to your cart.
