Beyond the Tech Giants: 35 Non-Tech AI Opportunities

22. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 35

CarMax, Inc. (NYSE:KMX) operates as a retailer of used vehicles and related products in the United States. The firm has been utilizing AI tools to improve operations, particularly in the area of vehicle inspections for wholesale operations. In collaboration with the AI technology company UVeye, CarMax has integrated AI-powered vehicle assessment tools. These systems use AI and computer vision to automatically inspect vehicles, analyzing elements like the body, tires, and undercarriage for issues such as frame damage, leaks, or missing parts. This helps CarMax provide more detailed and accurate condition reports for vehicles sold at auction, improving transparency for buyers.

CarMax, Inc. (NYSE:KMX) has earned bullish calls from Wall Street. Wedbush analyst Seth Basham recently raised the price target on the stock to $95 from $85 and kept an Outperform rating, noting that in the data the advisory reviewed, there were mixed but positively biased trends. Per the advisory, on the one hand, full portfolio year-over-year loss rates declines sequentially accelerated and year-over-year delinquency rate increases decelerated in Q1, but on the other hand, securitized portfolio trends continued to deteriorate by more than historical seasonal averages in June.