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BofA Flags Rising Oversupply Risk in Natural Gas, Trims View on National Fuel Gas (NFG)

National Fuel Gas Company (NYSE:NFG) is included among the 14 Best Mid-Cap Dividend Stocks to Buy Now.

On January 16, BofA trimmed its price target on National Fuel Gas Company (NYSE:NFG) to $99 from $102. It maintained an Underperform rating on the stock. The firm noted that optimism around natural gas has stayed strong for roughly the past 18 months, but it believes the market could start facing a higher risk of oversupply by 2027. That view, along with lower gas price forecasts, led BofA to cut its price targets across the gas-heavy E&P group by an average of about 12%.

On December 31, National Fuel Gas Distribution filed its annual Purchased Gas Cost update with the Pennsylvania PUC, projecting higher natural gas supply costs for Aug. 1, 2026, through July 31, 2027. If approved, overall gas supply charges would rise by about $71.49 per year, increasing a typical residential customer’s bill from $87.18 to $93.13 per month (a 6.83% increase) starting Aug. 1, 2026.

The company attributes the increase mainly to expected higher natural gas purchase and transmission costs, with NYMEX forecasting higher gas prices next winter compared with the prior 12-month average ending Nov. 30, 2025. National Fuel notes it is legally required to secure reasonably priced supply and pass market costs through to customers with no markup, subject to PUC review and approval. After approval, rates would be adjusted quarterly based on actual market conditions.

National Fuel Gas Company (NYSE:NFG) is a diversified, integrated energy business with a broad natural gas footprint. The company operates across the value chain, including production, gathering, transportation, storage, and distribution.

While we acknowledge the potential of NFG as an investment, 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 NFG and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Best Dividend Kings to Buy in 2026 and 15 Best High Yield Stocks To Buy.

Disclosure: None.

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

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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