Philip Morris International Inc. (PM) Expands U.S. Operations With New IQOS ILUMA Production Line

Coatue Management holds $236.48 million worth of shares in Philip Morris International Inc. (NYSE:PM), representing 0.66% of its total 13F portfolio, helping the stock secure a place on our list of billionaire Philippe Laffont’s 10 stock picks with huge upside potential.

Philip Morris International Inc. (PM) Expands U.S. Operations With New IQOS ILUMA Production Line

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Intending to expand its manufacturing facility in Wilson, North Carolina, Philip Morris International Inc. (NYSE:PM) announced a $37 million investment on October 2, 2025.

With this expansion, Philip Morris International Inc. (NYSE:PM) will add a new production line for TEREA, which is the consumables used in its IQOS ILUMA heated tobacco system. Its Wilson site, which produces HEETS (tobacco sticks) for the IQOS 3.0 device, is central to the company’s U.S. strategy to scale smoke-free alternatives, as regulatory advancements occur on the matter.

Meanwhile, discussing the increasing competition in the U.S. nicotine pouch sector, UBS recently highlighted the resulting impact on Philip Morris International Inc. (NYSE:PM)’s ZYN brand, which is expected to see a slight reduction in revenue projections. The investment firm noted limited brand loyalty among nicotine pouch users, which could potentially adversely affect the company’s market share. Consequently, UBS maintained its “Hold” rating on PM with a $166 price target on September 5, 2025.

Amid these developments, analysts are keeping a close eye on the company’s smoke-free transformation, with Philip Morris International Inc. (NYSE:PM) making significant advancements in its IQOS products.

Philip Morris International Inc. (NYSE:PM), a leading global tobacco company, is focused on the development of smoke-free and reduced-risk products. It is included in Philippe Laffont’s stock portfolio.

While we acknowledge the potential of PM to grow, 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 100x upside potential, check out our report about this cheapest AI stock.

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