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​NIKE, Inc. (NKE) Down 10.8% Since Q2 2026, Wall Street Remains Positive

​NIKE, Inc. (NYSE:NKE) is one of the Best Quality Stocks to Buy Before 2026. The share price of NIKE, Inc. (NYSE:NKE) has fallen more than 10.8% since the release of its fiscal Q2 2026 earnings on December 18. As a result, Wall Street adjusted its price targets accordingly. However, the general analyst consensus remains positive with the 12 month average price target reflecting more than 31% upside from the current level.

​The decline in share price came despite the company beating expectations. During the quarter, NIKE, Inc. (NYSE:NKE) grew its revenue by 0.59% year-over-year to $12.43 billion, surpassing estimates by $218.31 million. The EPS of $0.53 also topped expectations by $0.16. The falling investor sentiment was mainly due to the company’s gross profit margins that declined by 300 basis points and a 17% decline in China Sales. On the bright side, the wholesale revenue in North America increased 20%, indicating that management has made progress in repairing its relationship with retail partners.

Following the release, on December 19, Paul Lejuez from Citi reiterated a Hold rating on NIKE, Inc. (NYSE:NKE) and lowered the price target from $70 to $65. On the same day, Jay Sole from UBS also reiterated a Hold rating on the stock and lowered the price target from $71 to $65.

Analyst Sole of UBS noted that the second quarter results depict that the company’s turnaround is taking longer than expected. He added that this suggests that the company might need more time to resize its inventory. Sole noted that despite the falling investor sentiment, NIKE, Inc. (NYSE:NKE) is expected to return to mid-single-digit percentage sales growth and approximately 10% EBIT margin over the long term.

NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, and accessories for sports and fitness activities worldwide. ​

While we acknowledge the potential of NKE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NKE and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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