Synthetic intelligence (AI) is all over the place. It’s wonderful that just some quick years in the past, none of us knew something about ChatGPT or utilizing AI. And but, it has been creeping in for years. And now we have seen some AI-enabled firms shoot up lengthy earlier than we have been utilizing AI to do lots of our soiled work.

A kind of AI shares that’s shot up and continues to rise is Shopify (TSX:SHOP). After rising massively between 2015 and 2020, the corporate got here again all the way down to earth. Now, it’s a cleaner, meaner-looking funding, particularly for long-term traders. So let’s have a look at why this AI inventory may be the one which belongs in your long-term progress portfolio.

Into earnings

Now that we all know a bit in regards to the previous, let’s have a look at what’s been taking place these days. Shopify just lately reported its quarter ending June 30, 2025. The AI inventory reported a 31% enhance in income for the quarter, marking the eighth consecutive quarter of double-digit free money move margins.

What’s extra, Shopify reported a 16% free money move margin, demonstrating its robust operational effectivity. And now, it’s on the transfer. Shopify noticed progress in North America, Europe, and the Asia Pacific. Europe, specifically, achieved main gross merchandise quantity (GMV) progress at 42%.

So what extra may we presumably need? AI may be right here, however now virtually everybody and their mom makes use of it. Meaning the expansion alternatives that have been as soon as obtainable for traders to get in on the bottom flooring are not there. So the place is that this prime AI inventory headed subsequent?

Future outlook

Fortunately, traders obtained a peak at that, too. Shopify reported that for the third quarter of 2025, the corporate expects income progress within the mid-to-high twenties share vary year-over-year. That might be unbelievable efficiency for the remainder of the 12 months. Moreover, it projected progress in gross revenue {dollars} within the low-twenties share vary.

As for bills and compensation, the AI inventory believes it would see working bills at 38% to 39% of income, in addition to $130 million in stock-based compensation. So for traders pondering that the very best is over, it appears as if this AI inventory is simply getting began.

Actually, as Shopify continues to broaden from small companies to among the largest names on the planet, there’s one factor we will’t overlook. That’s Black Friday. The AI inventory has traditionally carried out extremely effectively, breaking information repeatedly. And now, we’re proper in the midst of that quarter.

Issues

Now, the one factor you gained’t get with Shopify inventory is a dividend. The corporate is a number one world commerce firm spending its money on progress, not revenue, for traders. What’s extra, financial circumstances will definitely play a job in how the corporate performs, because it is dependent upon client and enterprise spending.

But even so, this $265 billion firm holds a powerful market presence. With a revenue margin at 23.4% and working margin at 14.2%, it’s now more healthy than ever. And whereas its beta of two.7 suggests it’s nonetheless on the extra risky aspect, that tends to fall to the wayside when contemplating the AI inventory as a long-term maintain.

Backside line

Shopify inventory is a powerful firm solely getting stronger. Whereas there are others prefer it, the AI inventory has confirmed it may be one of the vital profitable e-commerce firms on the planet. And should you contemplate this AI inventory, you may simply maintain probably the greatest portfolios on the planet as effectively.