01. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 163
Visa Inc. (NYSE:V), a global leader in payment technology, operates VisaNet, a comprehensive transaction processing network that handles authorization, clearing, and settlement of payment transactions. Known for its broad portfolio of credit, debit, and prepaid card solutions, Visa is a key player in the fintech industry, offering innovative services such as Visa Direct and Visa B2B Connect for cross-border payments. The company’s involvement in AI and blockchain technology is driving its growth in the fintech space, helping streamline payment processes and enhance security through fraud prevention solutions.
One of Visa Inc. (NYSE:V) latest innovations is the Visa Tokenized Asset Platform (VTAP), launched in October 2024. This blockchain-based platform allows financial institutions to issue fiat-backed tokens on blockchain networks. Visa is targeting the growing intersection of blockchain and traditional banking with VTAP, enabling banks to mint, burn, and transfer tokenized fiat currencies like stablecoins. Through VTAP, Visa aims to integrate blockchain technology into existing financial infrastructures with minimal technical integration via APIs. The company plans to launch live pilots of the platform in 2025, starting with BBVA on the Ethereum blockchain.
AI plays a crucial role in Visa Inc. (NYSE:V) growth strategy, particularly in fraud prevention. Visa recently announced its acquisition of Featurespace, a leading AI-driven firm specializing in fraud detection. This move is expected to further enhance Visa’s capabilities in identifying and mitigating financial fraud, strengthening its position as a secure and reliable payments provider in the fintech space.
Despite some regulatory challenges, including a Department of Justice (DOJ) lawsuit alleging anti-competitive practices in its U.S. debit business, Visa has maintained strong financial performance. On October 3, 2024, BMO Capital reiterated its Outperform rating for Visa, with a price target of $300. Analysts believe the long-term impact of the DOJ lawsuit will be limited, and Visa Inc. (NYSE:V) continued investments in AI and blockchain technologies position it for future growth.
Additionally, Visa Inc. (NYSE:V) strategic financial decisions, such as a $1.5 billion allocation to its litigation escrow account, have resulted in the repurchase of 5.5 million shares, reflecting strong shareholder returns. With its focus on AI, blockchain, and financial innovation, Visa Inc. (NYSE:V) remains a dominant fintech player.
While we acknowledge the potential of VISA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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