Not every company in the world is an “AI business,” but virtually every company can use artificial intelligence (AI) to improve its operations. Those that do so early should be able to get ahead of the competition — and it increasingly looks like Coupang (NYSE: CPNG) will be one of them.
The technology company, which does most of its business in East Asia, recently announced a partnership with Nvidia to optimize its e-commerce network. But does that make the stock a buy?
After news of a major data leak last year grew into a complex scandal, its stock price tanked: It’s now down by about 44% from the 12-month peak it touched in October. But Coupang appears to be getting back on its feet. Management said revenue growth began to recover in February, suggesting that conditions would return to normal throughout the rest of the year. Now, the company is again becoming aggressive with its growth plans, as seen in its recent partnership with Nvidia to build an AI factory to support its e-commerce logistics network. This will be done through Coupang’s internal cloud network, utilizing the latest Nvidia computer chips and software to optimize its systems.