GameStop an AI Stock? Dan Ives Says ‘Market Has Not Priced’ In Opportunities
Chris Katje 2 hours ago
Trading IdeasLong IdeasAnalyst RatingsAnalyst ColorPrice TargetGaming
Tech analyst Dan Ives expects video game retailer GameStop to "pivot" into AI, a story that investors are missing.
Dan Ives‘ “biggest takeaway” from a lunch with GameStop Corp (NYSE:GME) CEO Ryan Cohen “is that this is the start of GME’s AI pivot.”
In a new investor note, the tech analyst maintained an Outperform rating on GameStop stock with a price target of $32.
Cohen told Ives that AI can optimize and fix enterprise systems to make things faster, including email campaigns.
"Cohen sees the ability to run the company autonomously in the not-too-distant future, and while AI grading is a logical extension, he has not pursued it because everything runs through PSA today. He expects other AI opportunities to come from the brand, the distribution and the customer base."
The collectibles business is what makes the AI story possible for GameStop, he argued. "Cohen walked into a dying company and spent the first years cutting costs and fixing systems,” he added.
This included cutting the store count from over 7,000 globally to 1,600 in the U.S. and Australia, and focusing on keeping the profitable stores.
‘The Rest of Retail Will Spend Years Catching Up’
"This is the part of the GameStop story the market has not priced,” Ives wrote. “A retailer with 1,600 U.S. stores and the leanest cost structure in the sector, operated by a CEO who treats the tech stack as something to be completely revamped."
Ives highlighted that collectibles sales were up 57% year over year in the second quarter and represented 45% of sales. Video games bring in less than 12% of revenue, a reversal of years past.
GameStop has become one of PSA’s largest partners, including buying graded cards from customers in stores. Those purchases then fund GameStop’s Power Packs, a digital vending machine with high margins.
"In our view, a growth business with expanding margins, a sourcing moat no online marketplace can copy, and an AI operating model the rest of retail will spend years catching up to is being missed by the Street."
GameStop Stock Price Action
GameStop stock is down 2.1% to $25.02 on Thursday versus a 52-week trading range of $17.79 to $28.30. GameStop shares are up 21.7% year-to-date in 2026.
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