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Regulatory Delays and Weakening Margins Weigh on Morgan Stanley’s ADM Outlook

Archer-Daniels-Midland Company (NYSE:ADM) is included among the 12 Best Income Stocks to Buy Now.

On December 16, Morgan Stanley analyst Steven Haynes downgraded Archer-Daniels-Midland Company (NYSE:ADM) to Underweight from Equal Weight and cut the price target to $50 from $57. The firm said expectations tied to the Environmental Protection Agency’s renewable volume obligation now stretch into 2026, masking additional downside risk in ADM’s Carb Solutions unit as margins weaken. Morgan Stanley described the setup for the shares as unfavorable.

The downgrade comes even after a strong start to the year. Archer-Daniels-Midland Company (NYSE:ADM) shares are up more than 15% since early 2025. That rally has not been backed by earnings momentum. In November, the company lowered its 2025 profit outlook for the third straight quarter. Management pointed to ongoing uncertainty around US biofuel policy and global trade disruptions, both of which have weighed on oilseed crush margins. ADM and other agribusiness firms have felt steady pressure as ample global crop supplies and volatile commodity markets continue to squeeze profitability.

The strain showed up clearly in the latest results. Profit in Archer-Daniels-Midland Company (NYSE:ADM)’s agricultural services and oilseed segment, its largest business, dropped 21% in the third quarter to $379 million. A 93% collapse in crushing profits more than offset strength in corn and soymeal exports.

Looking ahead, ADM now expects adjusted earnings of $3.25 to $3.50 per share in 2025. That compares with its earlier forecast of about $4.00 and falls below analysts’ estimate of $3.79 per share. If those numbers hold, it would mark the company’s weakest earnings since 2019.

Archer-Daniels-Midland Company (NYSE:ADM) is a global food-processing and commodities-trading company headquartered in Chicago, Illinois.

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

READ NEXT: 14 Best Pharma Dividend Stocks to Buy in 2026 and 20 Best Performing Dividend Stocks in 2025

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.

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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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