Best Buy Co. Inc. (NYSE:BBY) doesn’t typically get recognized as one of the key beneficiaries of artificial intelligence. With most of the attention pointed firmly at leading semiconductors and other frontline innovators, retailers like Best Buy almost represent an afterthought. However, the beauty of AI is that it doesn’t stay siloed in the upstream realms. The tech is definitely making its way downstream — and BBY stock could be a beneficiary.
Fundamentally, Best Buy has always benefitted from the acceleration of digitalization. While the underlying products emphasized an untethering from the physical realm — which inherently invited competition from e-commerce platforms — consumers still needed a mechanism to actually demo the products. At that point, the convenience of just going home with the product right then and there helped elevate the retailer’s relevance.
More recently, Best Buy itself has essentially broadcasted this bullish narrative. Last year, the retailer posted breakout results for the second quarter, with the primary tailwind being the replacement cycle as consumers ditched yesteryear operating systems for the latest machinery. The company followed up that performance with another strong report for the third quarter. Here, management raised its fiscal 2026 guidance, thanks in large part to growth across key product lines.
Beyond the refresh cycle, the latest laptops and mobile devices are now embedded with AI, making these products far more useful than they ever were. During the dawn of machine intelligence, access was limited to upstream channels. Today, AI is integrated into the platforms consumers interact with daily. Given the remarkable tech paradigm shift, not having the latest tech now may impose a serious disadvantage.
Best Buy not only provides the latest consumer innovations but it also has the means to monetize product education and evangelism. As such, while BBY stock hasn’t exactly aligned itself …