Mastercard (NYSE:MA)

Mastercard (NYSE:MA)

Speaking of fighting fraud with AI, Mastercard is also a major player on the scene. Arguably, Mastercard has even more to gain from investing heavily in AI as it seeks to chase down the heavyweight champ Visa. Mastercard’s chief technology officer, Ed McLaughlin, recently sat down with Fortune in a chat centered around the company’s involvement with next-generation technologies, like AI.

“The way the [AI] systems are working is always making predictions of what’s most likely to happen,” said McLaughlin. “And that’s why these generative [AI] techniques are so exciting, as they’re allowing us to make better predictions.”

Undoubtedly, Mastercard seems to be doing its best to stay ahead, perhaps far ahead, of bad actors who seek to use AI for evil. This alone is enough to make anyone bullish. As the company continues to perfect predictive AI, I expect it could prevent a swelling figure of fraud losses. Undoubtedly, AI-driven fraud management is a big deal when it comes to saving money in the never-ending battle against fraud.

At this juncture, I don’t think you could go wrong with Visa or Mastercard when it comes to AI-driven payment innovation. As it stands, however, I’m a bigger fan of MA stock, even at the pricier 32.2 times forward price-to-earnings multiple. The number-two credit card behemoth has room to catch up to Visa as it looks to aggressively invest in AI to go on the offensive.

What Is the Price Target of MA Stock?

Mastercard stock is a Strong Buy, according to analysts, with 29 Buys and one Hold assigned in the past three months. The average MA stock price target of $512.48 implies 9.4% upside potential.