Bank of America argues Amazon retail rival is major AI winner

Bank of America reinstated Shopify with a Buy rating and $150 price target, arguing the shift to AI-driven, agentic commerce could make Shopify a core beneficiary rather than a casualty. The note says AI shopping is moving closer to checkout, increasing the importance of merchant infrastructure such as catalogs, inventory, pricing, payments, and fulfillment—areas where Shopify is embedded. BofA highlighted strong early signs: AI-driven traffic to Shopify merchants rose eightfold year over year in Q1, AI-powered search orders increased about 13 times, and new-buyer orders from AI surfaces were nearly twice as high as traditional channels. Shopify also posted Q1 revenue growth of 34% and GMV of $100.7 billion, while guiding Q2 revenue growth in the high-twenties. The bullish thesis is supported by international growth and larger merchants, though risks include AI disintermediation and competition.