Bulk Armor: Costco's Global Expansion and AI Edge Making it the Apex Predator of Stagflation

Costco Wholesale Corporation (NASDAQ:COST) is one of the Best Stagflation Stocks to Buy Now. In 2025, Costco is doubling down on its global footprint and digital transformation. The company announced plans to open 27 to 29 new warehouses this year, expanding into regions like South Korea and Sweden while strengthening presence in the U.S.

These additions aren’t just about square footage—they’re strategic anchors aimed at fortifying Costco’s revenue against regional shocks and macro volatility.

On the digital front, Costco is integrating AI-powered systems into its e-commerce operations. These tools help optimize inventory replenishment, reduce waste, and cut down on out-of-stock events, and enhance both operational efficiency and customer satisfaction. The impact is already visible: in Q3 2025, Costco’s e-commerce sales jumped 11.6%, contributing to a 6.8% increase in total net sales.

Costco Wholesale Corporation is a membership-based retail giant, renowned for its no-frills model, competitive pricing, and customer loyalty. With a core focus on value and volume, Costco’s business thrives on scale and efficiency, traits that position it squarely in the defensive stock category.

While we acknowledge the potential of COST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.