Walmart has broken the bank and is racing against big tech. The first such situation in history
On Tuesday, Walmart became the first retailer to reach a market valuation of $1 trillion. The American chain's stock prices increased by 26% during the year, which allowed it to join the group of technology giants such as Nvidia, Apple and Microsoft. “It's the new artificial intelligence giant,” the analyst says of Walmart.
Walmart joins the group of American companies valued at $1 trillion. or more, which also includes:
- Nvidia – $4.5 trillion,
- Alphabet – $4.1 trillion,
- Apple – $3.9 trillion,
- Microsoft – $3.1 trillion,
- Amazon – $2.6 trillion,
- Meta — $1.8 trillion,
- Broadcom – $1.6 trillion,
- Tesla – $1.6 trillion,
- Berkshire Hathaway – $1 trillion.
Walmart is booming
Over the last decade, Walmart's shares have increased by 468%, while the S&P 500 (an index of the 500 largest companies on the US stock exchange) has increased by 264% in that time.
Entering the group of companies with a market valuation exceeding USD 1 trillion. came just two weeks after Walmart replaced British drugmaker AstraZeneca in the Nasdaq-100 index, which includes the most valuable companies outside the financial sector.
Walmart is betting on AI. “The new giant of artificial intelligence”
The company has embraced artificial intelligence, investing billions of dollars in supply chain automation to help stock stores with fresher products and reduce delivery times as consumers increasingly value the convenience of online grocery shopping.
“They have gone from a local retailer offering good prices to a true commitment to technology. The company has undergone a tremendous digital transformation over the last five years,” said Eric Clark, chief investment officer at Accuvest Global Advisors.
Walmart is emerging as the “new AI giant” by successfully incorporating the technology into its operations, according to Brian Mulberry, senior client portfolio manager at Zacks Investment Management.
Source: Reuters
