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KeyBanc Trims Nike (NKE) Target but Sees Early Signs of Stabilization

NIKE, Inc. (NYSE:NKE) is included among the 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds.

On January 22, KeyBanc trimmed its price target on NIKE, Inc. (NYSE:NKE) to $75 from $90. However, the firm maintained an Overweight rating. The firm said there are early hints that the business is stabilizing, but warned that real progress will not happen overnight.

A few days later, a January 26 Reuters report added more context. Nike is laying off about 775 employees as it works to lift profitability and push more aggressively into automation. A source told Reuters the bulk of the cuts will come from distribution centers in Tennessee and Mississippi, home to some of Nike’s largest warehouses.

The company has been under steady pressure as it tries to recover lost market share to rivals. This is not the first round of job cuts tied to that reset. In August, Nike reduced its corporate workforce by just under 1% as part of turnaround efforts led by CEO Elliott Hill, who took the helm in 2024. Earlier, in February 2024, the company said it would eliminate roughly 2% of its workforce, more than 1,600 roles.

In a statement to Reuters, Nike said it is “taking steps to strengthen and streamline our operations so we can move faster, (and) operate with greater discipline.” The company noted that the latest reductions will largely affect U.S. distribution operations. As of May 2025, Nike employed about 77,800 people worldwide, including retail and part-time staff, according to its most recent annual report.

NIKE, Inc. (NYSE:NKE) designs, markets, and sells athletic footwear, apparel, equipment, accessories, and related services across global sports and fitness markets.

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

READ NEXT: 13 Dividend Stocks with Over 8% Yield and Retirement Stock Portfolio: 12 Low Risk Investments

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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