Visa and Mastercard Poised for AI-Driven Growth Spurt

The potential impact of artificial intelligence (AI) on the economy is vast and uncertain. While some predict unprecedented economic growth, one thing is clear: companies like Nvidia are poised to benefit from the trend.

However, investors who take a more nuanced view believe that certain S&P 500 stocks will reap even greater rewards if AI lives up to its hype. According to a prediction, the U.S. GDP could grow at a rate of 6.7% per year, leading to a 91% increase in the domestic economy over the next decade.

This is particularly good news for Visa (V) and Mastercard (MA), two companies well-positioned to benefit from increased economic activity. In their latest fiscal quarters, they processed $30 trillion in combined annualized total payment volume, a figure that could rise significantly in an AI-powered economy.