The Silent AI Giant: How Walmart Benefits from Artificial Intelligence

Investors are desperately seeking secure ways to profit from the AI boom that has gripped the US stock market in recent months. The renowned investment bank Goldman Sachs recently released an investor letter outlining which economic sectors might benefit from this new technology. Instead of focusing on the obvious favorites in the technology sector, the report provides deep insights into the long-term impact of AI on utilities, industries, retail, and healthcare. Goldman Sachs analysts predict that AI tools will help companies outside the technology sector increase productivity and reduce costs. David Kostin, Chief US Equity Strategist at Goldman Sachs, wrote in the investor letter that the AI boom will unfold in four key phases. The first phase involved NVIDIA, the chip manufacturer at the forefront of AI data center construction. The second phase, according to Kostin, revolves around companies building AI infrastructures. This includes semiconductor, data center, network, cloud, and security industries, as well as utilities. The third phase will impact companies that integrate AI into their products, thus boosting their sales. However, Kostin warned that these companies have lagged behind AI stocks in recent months. In the fourth phase, the analyst explained, firms will benefit from productivity gains achieved through the use of AI. These companies have so far been ignored by the market. A prime example is Walmart. Although the retailer is not immediately associated with generative AI, the company utilizes this technology to enhance customer experiences and manage inventory more efficiently. In the recent earnings announcement, Walmart highlighted that over 850 million data points had been improved with the help of large language models. The company also optimized category search in e-commerce, leading to an increase in impulse purchases. Additionally, Walmart is working on a new virtual assistant trained in natural language to answer customer questions. In our list of 35 non-technology stocks with long-term investment potential, Walmart ranks second. We are convinced of Walmart's potential but believe that some AI stocks may deliver higher returns in a shorter period. Further important information and affordable AI stocks can be found in our detailed report.