Costco Stock Gets a Boost—But Is AI the Better Buy Right Now?

July 15, 2025: Costco stock (NASDAQ:COST) continues to impress hedge funds and analysts alike, maintaining its position as one of the top consumer staples stocks. Loop Capital recently reaffirmed its Buy rating on Costco and raised its price target from $1,110 to $1,170 on June 5.

The upgrade followed a strong showing in May, where Costco’s international same-store sales exceeded expectations, surging 8%. Core same-store sales climbed 6%, and analysts noted that foreign exchange headwinds were milder than anticipated.

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Analysts at Loop Capital also pointed out Costco’s reluctance to hike prices, a strategy they believe is helping the retailer gain market share—even amid inflationary pressures and tariffs.

As a membership-driven warehouse giant, Costco continues to offer bulk savings on essentials ranging from groceries to electronics.

Still, while COST remains a strong long-term play, analysts suggest that the real near-term opportunity may lie in undervalued AI stocks. With the resurgence of Trump-era tariffs and the onshoring push, some AI companies may offer better upside with less risk.

For those looking to balance stability with high-growth potential, Costco delivers steady performance—but AI could be where the real action is next.