Walmart became the first retailer ever to hit $1-trillion in market valuation on Tuesday, riding on a year-long rally that has seen its shares rise nearly 26%, putting it in the ranks of big tech heavyweights such as Nvidia and Alphabet.
The supermarket chain has cashed in on wealthier consumers choosing the convenience of faster deliveries and flocking to the retailer for discretionary categories, such as apparel and furniture. In the past decade, Walmart’s stock is up 468%, compared with a 264% rise in the S&P 500.SPX index.
US households, particularly low- and middle-income earners, have been under mounting financial strain for some time due to persistent inflation and a cooling job market. Tariffs and uncertainty surrounding the recent U.S. government shutdown have also weighed on spending.
It’s been a massive digital business transformation that this company has gone through over the past five years.
— Eric Clark, chief investment officer at Accuvest Global Advisors
The latest milestone for the company came just two weeks after Walmart replaced British drugmaker AstraZeneca in the tech-focused Nasdaq-100, home to the most valuable non-financial companies.
The company has bet on artificial intelligence (AI), pouring billions into automation in its supply chain to help stock its stores with fresher produce and improve delivery times, as consumers increasingly prefer the convenience of purchasing groceries online.
“They’ve gone from just being the local retailer for good prices to really embracing technology. It’s been a massive digital business transformation that this company has gone through over the past five years,” said Eric Clark, chief investment officer at Accuvest Global Advisors.
Walmart joins a roster of US companies valued at $1-trillion or more, including 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) and Berkshire Hathaway ($1-trillion).
Walmart is emerging as “the new AI giant” thanks to how effectively it is weaving the technology into its operations, from cutting the cost of goods to capturing a larger share of consumer spending, according to Brian Mulberry, senior client portfolio manager at Zacks Investment Management.
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