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RBC Sees Johnson & Johnson (JNJ) Well Positioned to Manage Legal Overhang

Johnson & Johnson (NYSE:JNJ) is included among the 15 Best Wide Moat Dividend Stocks to Invest in.

On February 3, RBC Capital raised its price target on Johnson & Johnson (NYSE:JNJ) to $255 from $240 and reiterated an Outperform rating. The firm said the company is unlikely to reverse the core implications of the Daubert ruling. Even so, the analyst noted that the litigation could stretch on for years, handled case by case and year by year. RBC added that Johnson & Johnson’s strong balance sheet and improving operating trends give it room to manage those risks.

The view comes after Johnson & Johnson reported full-year results for 2025 last month. It was another steady year. Revenue rose 6% to $94.2 billion, in line with what investors have grown accustomed to from the company. Growth was slower in 2024, at about 4%, but single-digit increases have long been the norm for a business of this size. Lately, the tone from management has been more confident. CEO Joaquin Duato said the company sees a clearer path to faster expansion, noting, “We have line of sight to double-digit growth by the end of the decade.”

Oncology sits at the center of that plan. Johnson & Johnson wants to become the world’s leading cancer drugmaker and is targeting $50 billion in oncology revenue over time. That would be roughly double what the segment generated in the most recent year.

Looking ahead, management is projecting 2026 revenue of $100.5 billion, which implies growth of around 6.7%. The trend in the top line suggests momentum is building, something growth-oriented investors tend to watch closely.

Johnson & Johnson (NYSE:JNJ) operates across healthcare through its Innovative Medicine and MedTech segments, developing and selling a wide range of pharmaceutical and medical technology products.

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

READ NEXT: Dividend Growth Stocks: 25 Aristocrats and 12 Best HVAC Stocks to Buy Now

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…

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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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