AI-Powered Economic Growth Sparks Buying Opportunity in Visa and Mastercard
If artificial intelligence (AI) leads to unprecedented economic growth, two S&P 500 stocks could be once-in-a-decade buying opportunities right now. According to optimists, AI capabilities and adoption will result in greater global GDP, leading to higher commerce activity.
Visa (NYSE: V) and Mastercard (NYSE: MA), the world's leading card payment platforms, are poised to benefit from this growth. As their network effects continue to drive revenue, they may emerge as long-term beneficiaries of an AI-powered economy.
The spending boom on AI infrastructure has already begun, with Nvidia management predicting $3 trillion to $4 trillion in related expenses by the end of the decade. However, the impact of AI on the broader macro picture remains uncertain.