Walmart Touted as Premier AI Play Ahead of Q3 Earnings Despite Stock Dip

Walmart shares edged lower Thursday even as analysts championed the retail behemoth as an underappreciated AI beneficiary. The divergence highlights growing institutional interest in 'old economy' companies positioned to harness artificial intelligence for operational gains.

"2026 may be the year of investing in companies benefiting from all this, while sidestepping pure AI plays," said Mahoney Asset Management CEO Ken Mahoney, voicing concerns about frothy valuations in tech-centric AI stocks. His firm is pivoting toward established corporations implementing AI solutions - with Walmart's supply chain and inventory management systems prime candidates for transformation.

Laffer Tengler Investments' Nancy Tengler concurred, noting Walmart's massive scale creates disproportionate efficiency opportunities. The retailer's upcoming earnings may showcase early AI-driven margin improvements, though markets currently fixate on flashier tech names.