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Jefferies Sees Limited Re-Rating Upside for Philip Morris (PM) in 2026

Philip Morris International Inc. (NYSE:PM) is included among the 15 Best S&P 500 Dividend Stocks to Buy in 2026.

On January 20, Jefferies analyst Edward Mundy moved Philip Morris International Inc. (NYSE:PM) to Hold from Buy and cut the firm’s price target to $180 from $220. In his note, he said Jefferies sees limited room for the stock to be re-rated in 2026. The analyst also pointed to tougher competition. He noted that British American Tobacco (BTI) is pushing category growth in US nicotine pouches, while Japan Tobacco is “competing more assertively” in heated tobacco. Because of that backdrop, Jefferies believes there is downside risk to consensus estimates for Philip Morris.

In a separate January 15 press release, Philip Morris International said it remains committed to investing in the US. The company stated it has invested more than $20 billion in America since 2022, with most of that tied to acquiring and expanding US manufacturing capabilities, commercial rights and infrastructure, and supporting US jobs.

The release noted that around $19 billion of these investments came in 2022, including the Swedish Match acquisition. PMI highlighted that Swedish Match generates the large majority of its revenues in the United States, and described the deal as a major part of its US investment strategy.

Since that acquisition, PMI US has invested more than $1 billion into American manufacturing, operational capabilities, and people costs through September 30, 2025. The company also pointed to infrastructure investments in Colorado, Kentucky, and North Carolina. PMI said these projects are expected to create more than 1,000 direct jobs and 1,500 indirect jobs, with an ongoing annual economic impact estimated at over $800 million.

Philip Morris International Inc. (NYSE:PM) is a global consumer goods company focused on building a smoke-free future. Over time, it has also been working to evolve its portfolio beyond tobacco and nicotine products.

While we acknowledge the potential of PM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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

READ NEXT: Dividend Contenders List: Top 20 Stocks and 12 Most Profitable Dividend Stocks to Buy in 2026

Disclosure: None.

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:

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