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Morgan Stanley Upgrades Garmin (GRMN), Raises Price Target to $252 from $195

We recently published an article titled 13 Best Internet of Things (IoT) Stocks to Buy Now.

On February 19, Morgan Stanley upgraded Garmin Ltd. (NYSE:GRMN) to Equal Weight from Underweight and raised its price target to $252 from $195, stating that its prior negative thesis has largely played out. The firm cited stronger-than-expected 2026 revenue and margin guidance, which it views as conservative, as a catalyst for improved sentiment.

The company reported full-year 2025 consolidated revenue of $7.246 billion, up 15% year over year and a new annual record, while fourth-quarter revenue reached $2.125 billion, increasing 17% year over year and surpassing $2.0 billion for the first time in a single quarter. Pro forma EPS for 2025 was $8.56, up 16% year over year, with fourth-quarter pro forma EPS of $2.79, also up 16%. Garmin Ltd. (NYSE:GRMN) ended the year with approximately $4.1 billion in cash and marketable securities and generated approximately $1.4 billion in free cash flow. The company proposed an annual dividend of $4.20 per share, representing a 17% increase, and approved a $500 million share repurchase program. For 2026, management guided to consolidated revenue of approximately $7.9 billion, gross margin of about 58.5%, operating margin near 25.5%, and operating income exceeding $2.0 billion for the first time, with pro forma EPS projected at approximately $9.35. Guidance incorporates anticipated memory cost pressures and tariff impacts, offset by favorable product mix and supply chain initiatives. Strong revenue growth, margin resilience, and substantial capital returns reinforce Garmin’s ability to compound earnings through diversified end markets.

Garmin Ltd. (NYSE:GRMN), founded in 1989 and headquartered in Olathe, Kansas, specializes in wearable technology, GPS, and communication devices, serving consumer, aviation, marine, and fitness markets through connected IoT-enabled products.

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

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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.

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  • 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.

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