Does Visa suffer from or benefit from AI?
IA Global Asset Management analyst Dan Rohinton said Visa (Visa Stock Quote, Chart, News, Analysts, Financials NYSE:V) remains an attractive way to play broadening equity markets and the accelerating shift toward digital payments.
Speaking on BNN Bloomberg’s Market Call on Jan. 2, Rohinton said Visa stands out as one of the few high-quality growth companies trading below its long-term valuation average while still delivering growth rates that are as strong as, or stronger than, in prior cycles.
He said structural trends tied to artificial intelligence could further reinforce Visa’s growth outlook. As AI-driven “agentic commerce” tools increasingly handle tasks such as travel bookings and day-to-day purchases, Rohinton expects payment activity to become faster and more frequent, with transactions ultimately routed through Visa’s network.
“When you think about what AI means in everyday life, it’s less use of cash, basically to zero, and faster payment velocity,” Rohinton said. “Those payments still have to clear somewhere, and that entrenched position Visa has built over the past 25 years doesn’t go away.”
Rohinton added that he has owned Visa for years but sees the current valuation as a renewed entry point rather than a reason to trim exposure.
Visa shares have gained 9.7% over the past 12 months and closed Jan. 6 at US$353.80.
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Rod Weatherbie
Writer
Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine. His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.