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RBC Lowers Nike (NKE) Target but Sees Path to Profitable Growth Intact

NIKE, Inc. (NYSE:NKE) is included among the 12 Best DOW Stocks to Buy in 2026.

On January 6, RBC Capital Markets lowered its price target on NIKE, Inc. (NYSE:NKE) to $78 from $85 and kept an Outperform rating. The firm said Nike’s path to profitable growth remains intact, even if the timeline has stretched. Pressure from Greater China, weakness at Converse, and US tariffs are weighing on margins, the analyst wrote. Even after 8%–10% estimate cuts, RBC still expects about $3 in EPS by FY28. Recent share price declines have pulled the valuation closer to historical averages, and insider buying adds to the setup.

NIKE, Inc. (NYSE:NKE) shares are down nearly 17% in 2025. A big concern is how dependent the company has become on China. That relationship has paid off for decades. Roughly 18% of Nike’s footwear is still produced in China, a figure that was likely higher in earlier years. Lower-cost manufacturing helped the company control expenses and lift margins over much of its public history.

Over time, that same model carries trade-offs. Outsourced manufacturing can lead to technology transfer and brand dilution. According to ABC, Nike shoes rank among the most counterfeited products globally. Replicas have become so convincing that even experts struggle to spot the difference. Manufacturing know-how and materials are no longer concentrated, and Nike’s wide supply chain may be part of that story.

The impact is showing up in results. Nike’s footwear sales in China fell 20% in the fiscal second quarter, marking a sixth straight quarter of decline in what was once a core growth market.

NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, accessories, and related services for sports and fitness worldwide.

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: 14 Best Dividend Growth Stocks to Buy and Hold in 2026 and 13 Best January Dividend Stocks to Invest In

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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