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Mizuho Reaffirms Outperform Rating for Chewy (CHWY)

Chewy Inc. (NYSE:CHWY) is one of the 12 best buy-the-dip stocks to invest in now.

On June 3, while maintaining an Outperform rating on the stock, the price target on Chewy Inc. (NYSE:CHWY) was cut down from $50 to $40 by Mizuho. Ahead of Chewy’s results, the firm reduced its projections, claiming that the consensus expectations are still too high and need to be significantly adjusted.

Stokkete/Shutterstock.com

Mizuho also pointed out that management has already drawn attention to declining demand patterns and pressures on pet spending brought on by inflation. According to the firm, the company could possibly lower its guidance to the lower half of its preliminary FY26 guidance range.

Although Chewy still has long-term growth prospects in sectors including advertising, private-label goods, and veterinary services, the firm feels that investors are having difficulty finding short-term catalysts that could spur a comeback in the pet products market. Despite that, Mizuho’s projected price target offers an impressive upside potential in excess of 92%.

Back on May 26, Barclays reiterated an Overweight rating for Chewy Inc. (NYSE:CHWY) while reducing the price target from $48 to $40. Barclays added that despite the fact that the company has much better forward growth expectations and EBITDA margins, its stock has declined by 50% in the past two years.

Furthermore, the current stock price factors in a high degree of negative sentiment, which ultimately establishes a highly favorable risk-to-reward profile for investors at current levels.

Chewy Inc. (NYSE:CHWY) is an e-commerce retail business that focuses on pet-health products and services. It offers supplies, medications, treats, and food for pets through a popular “Autoship” service, which generates 70% of business revenues. It offers products from over 3,500 brands through a high-volume automated distribution network.

While we acknowledge the risk and potential of CHWY 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 CHWY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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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.

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

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