Walmart (NYSE: WMT) shares gained 2% in Wednesday’s session, hitting a new all-time high of $106.10, after Bank of America highlighted the retail giant’s growing leadership in artificial intelligence and raised its price objective.
Analyst Robert Ohmes reiterated a buy rating and lifted his target price to $125 per share from $120, implying roughly 21% upside from Tuesday’s close.
Walmart steps into agentic AI
According to Ohmes, Walmart is positioning itself to become a leader in “agentic” AI commerce — a form of artificial intelligence where agents act autonomously to accomplish specific goals rather than simply responding to queries.
“WMT’s AI agent Sparky is testing well and will soon start taking ‘agentic’ action vs. just answering Qs (est. in weeks to months),” Ohmes noted.
While the concept is still in early development stages, he believes Walmart’s unmatched scale, its reach both online and in-store, and customer data from 180 million shoppers put the company in a strong position.
Ohmes also suggested Walmart is likely engaging with some of the leading large language model (LLM) developers, which could create valuable partnerships as AI-driven retail commerce evolves.
Consumer outlook strengthened by credit card and private labels
Beyond artificial intelligence, Walmart’s near-term consumer outlook appears healthy.
The company recently introduced a co-branded credit card with Synchrony, which Ohmes said could drive further membership growth.
Additionally, Walmart benefits from sourcing resilience — around two-thirds of its products are produced in the US, insulating the retailer from tariff-related headwinds.
Another area of strength lies in private-label adoption.
Ohmes highlighted that younger consumer cohorts are increasingly embracing Walmart’s private-label offerings, providing a margin-friendly growth driver for the company.
Delivery business builds competitive edge
Walmart is also making strides in delivery, a segment Ohmes believes could deliver long-term upside.
The company’s food delivery operation is already profitable, covering 95% of US households with grocery deliveries within three hours, and reaching about 25% of customers within just 30 minutes.
The analyst pointed out that Walmart’s combination of in-store shoppers and e-commerce delivery pickers gives it a speed and freshness advantage over peers.
Looking ahead, new and remodeled stores could accelerate this advantage, as they are being designed with additional space — up to 40,000 square feet adjacent to stores — dedicated to faster and more efficient pickup and delivery.
These expansions could also enable Walmart to forward deploy third-party inventory, providing even faster localized service.
Stock momentum reflects confidence
The stock’s 2% gain on Wednesday and new peak at $106.10 underscores growing investor confidence in Walmart’s ability to blend traditional retail scale with cutting-edge AI capabilities.
With a stronger consumer outlook, expanding delivery infrastructure, and a clear push into autonomous AI commerce, Bank of America sees Walmart as uniquely positioned among retailers.
As Ohmes summarized, Walmart’s strategic use of data, scale, and technology may establish it as a first mover in agentic AI commerce, offering long-term growth potential well beyond its current momentum.
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