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Investing.com -- Shopify could emerge as an under-the-radar beneficiary of the artificial intelligence boom, according to Wells Fargo (NYSE:WFC), which called the stock its signature pick, raising its price target on the stock to $125 from $107.
Brokerage called the Canadian e-commerce firm a “thematic AI story.”
While Shopify (NASDAQ:SHOP) isn’t typically viewed as an AI play, Wells Fargo said its internal AI adoption, AI-powered merchant tools, and partnerships with major players like OpenAI, Meta (NASDAQ:META), and Perplexity point to “layers of opportunity” across user experience and merchant efficiency.
The brokerage expects AI to reshape e-commerce by enabling personalized shopping, automating customer service, and optimizing pricing and inventory.
Shopify’s positioning, it said, could allow the company to gain share in what it calls “agentic commerce,” a market it estimates will reach $505 billion in gross merchandise value by 2030.
Internally, CEO Tobi Lütke has mandated AI adoption across the company, limiting new hires to roles AI cannot fill today, as per analyst.
Wells Fargo said this cultural shift supports Shopify’s long-term margin outlook and gives it confidence in the company’s ability to maintain flat headcount while growing.
Meanwhile, on Citigroup (NYSE:C) was also named signature pick. Brokerage said the ongoing restructuring, including Thursday’s announcement of 3,500 job cuts in Asia, highlights progress on costs, though only a fraction of financial benefits are reflected in current numbers.
Citi is about three-quarters through its restructuring, Wells Fargo said, but has captured only a quarter of the expected financial gains.
The firm expects expenses to fall through 2026, with efficiency ratios improving to 59% by 2027 from 72% in 2023.
The confirmation of a new Federal Reserve vice chair is also seen as supportive, especially if regulatory scrutiny becomes more flexible, easing compliance burdens tied to past consent orders.