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Charles Schwab (SCHW): A Target Cut Could Be Missing The Bigger Growth Story

With stock buybacks of $4.58 billion in the 12 months through September 2025, The Charles Schwab Corporation (NYSE:SCHW) is among the 20 Stocks with the Biggest Share Buybacks.

The Charles Schwab Corporation (NYSE:SCHW) received a revised analyst outlook on April 20 when Argus lowered its price target to $108 from $117 while maintaining a Buy rating following first-quarter results. The firm highlighted that revenue increased a strong 16%, supported by gains across major operating categories, while net interest margin expanded and total client assets reached $11.8 trillion. Argus added that it expects Schwab to deliver above-peer-average medium-term growth driven by innovative product offerings and continued market share gains.

On April 17, Morgan Stanley analyst Michael Cyprys lowered the price target on The Charles Schwab Corporation (NYSE:SCHW) to $125 from $135 while reiterating an Overweight rating. The analyst stated that the first-quarter report reinforced what the firm views as an increasingly differentiated earnings and growth profile within the brokerage sector, and following the release, Morgan Stanley raised its fiscal 2026 and 2027 EPS estimates by 3.6% and 4.7%, respectively.

The Charles Schwab Corporation (NYSE:SCHW) is a leading financial services company providing securities brokerage, banking, wealth management, and advisory solutions to retail investors and institutional clients. Founded in 1971 in San Francisco, the company is now headquartered in Westlake, Texas.

Despite modest price target reductions, both firms maintained constructive ratings while citing stronger earnings momentum, asset growth, and rising profitability metrics. Combined with $4.58 billion of stock repurchases over the prior twelve months, SCHW appears well-positioned to compound shareholder value through earnings growth and capital returns.

While we acknowledge the risk and potential of SCHW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SCHW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Gold Mining Companies to Invest In According to Wall Street and 11 Most Profitable Renewable Energy Stocks Right Now.

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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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