Tech stocks are going through unsteady times. In the past year, the tech-heavy Nasdaq-100 index has barely outperformed the S&P 500 index. Investors are anxious about the skyrocketing costs of capital expenditures by big AI companies, while also worried that AI could drastically disrupt the business models of software companies. The iShares Extended Tech-Software ETF, which holds a basket of North American technology and software stocks, is down almost 19% in the past year.
If you're skeptical about major artificial intelligence stocks or want a different way to invest your money away from the AI-driven tech sell-off, the world's largest retailer might be a good choice. Walmart (WMT +0.34%) shares are up about 30% in the past year, nearly doubling the return of the Nasdaq-100, and strongly outperforming major tech stocks like Meta Platforms, Microsoft and Amazon.
Is Walmart a tech stock now? Here are a few big reasons why Walmart might be a solid choice for tech stock investors in 2026 and beyond.
Walmart is adopting AI for online shopping
One theory about what's happening in the economy and stock market right now is that today's leading AI stocks might not ultimately be the biggest winners from the technology. Instead, other companies that successfully adopt AI could find ways to use the tools to be more profitable.
Walmart might be a perfect example of a company that embraces AI to drive efficiencies and sales increases. The company has recently announced partnerships with OpenAI and Alphabet's (GOOG +0.41%)(GOOGL +0.66%) Google Gemini to create AI-assisted shopping experiences. These AI partnerships might already be seeing results.
Image source: Getty Images.
Walmart's agentic AI tool, "Sparky," is boosting sales
On the company's latest earnings call on Feb. 19, executives said that Sparky, Walmart's AI shopping assistant, is already boosting sales results. Company executives reported that customers who engage with the Sparky AI assistant purchase an average order volume about 35% higher than customers who don't use the AI tool.
Why are AI tools like Sparky so important for e-commerce? Because AI helps companies like Walmart better understand what customers want. And agentic AI helps customers find what they want faster and makes the purchase decision easier.
Dave Gagina, Executive Vice President for Walmart U.S., said that "Sparky is essentially helping us evolve from traditional search to intent driven commerce" and that it's "helping customers convert with greater confidence." Gagina also said that "it is still early in this space and we're continuing to add capabilities."
So far, about half of Walmart app users are engaging with Sparky, so there is still room to grow. If Walmart can crack the code on agentic AI online shopping, this could make the company a big beneficiary of AI technology -- no matter what happens next with a possible AI bubble.
NASDAQ: WMT
Key Data Points
Walmart stock is not cheap. Its price-to-earnings ratio of 45 is higher than the Nasdaq-100 index's P/E ratio of 32.7. Retailers are capital-intensive businesses with a lot of fixed costs; even the best retail stock is unlikely to grow as fast as a high-flying capital-light tech stock.
But if you believe that the biggest gains of AI might go to the companies that adopt AI into their business models, Walmart could be poised to capitalize. This stock could be a good buy for patient investors.
