Is PayPal Holdings (PYPL) The Best Ecommerce AI Stock to Buy? Analyst Weighs In After OpenAI Deal

We recently published Top 9 AI and Non-Tech Stocks to Watch Amid Latest Earnings Season. PayPal Holdings Inc (NASDAQ:PYPL) is one of the top AI and non-tech stocks.

PayPal Holdings Inc (NASDAQ:PYPL) shares recently surged after the company signed a deal with OpenAI, after which ChatGPT users will be able to buy products using the payment firm’s platform.

Dan Dolev, Mizuho senior analyst, said in a latest interview on CNBC that research shows that Agentic AI could result in a 20% increase in ecommerce consumption.

“So the TAM is basically all of e-commerce, but we’ve seen some research that you could get like a 20% bump in e-commerce consumption because of Agentic AI. This is huge news for e-commerce overall, right? We’re talking about trillions of dollars, and it’s amazing news for PayPal Holdings Inc (NASDAQ:PYPL) because they’re part of that group.”

The analyst said that the fact that OpenAI chose PayPal Holdings Inc (NASDAQ:PYPL) shows the payments company’s “durability.”

“Not being there was the fear. So the fact is PayPal is there, and it’s there as one of the first few adopters of it. It’s great news. People that have written PayPal off or didn’t take that into account, we didn’t. We’re very bullish. And so the fact that they chose PayPal as a partner tells you a lot about PayPal’s durability.”

Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its third quarter 2025 investor letter:

“PayPal Holdings, Inc. (NASDAQ:PYPL) was a leading detractor in portfolios during the third quarter despite growing earnings per share +18% and growing adjusted transaction margin dollars +8%. The Company saw double-digit growth in their Venmo-branded revenue as they further expanded their monetization initiatives with merchants and consumers, including Pay With Venmo and the Venmo Debit Card. In addition, the Company has negotiated better economics with its high-volume processing segment, Braintree, which we expect should help accelerate revenue growth later this year and into 2026. Shares continue to trade at depressed multiples as the market has rotated into AI-focused tech and cryptocurrency-related financials. PayPal is being prudent with its investments in both those emerging areas of commerce, partnering with Google in agentic commerce solutions, and also expanding issuance and acceptance of PayPal U.S. dollar stablecoin.”

While we acknowledge the potential of PYPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.