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ResMed Inc. (RMD) Gains Analyst Confidence as Price Targets Rise on Strong Earnings

ResMed Inc. (NYSE:RMD) is one of the best medical technology stocks to invest in. On January 30, KeyBanc Capital Markets lifted its price target on ResMed Inc. (NYSE:RMD) to $302 from $299 and maintained an Overweight rating.

KeyBanc described ResMed’s second-quarter fiscal 2026 results as largely positive and supportive of its overall investment thesis for the company. The firm highlighted that ResMed’s Q2 revenue exceeded expectations, and that strength was concentrated in two core hardware segments: the Masks & Accessories and Devices businesses. This strength, the analysts said, drove the outperformance and even offset the underwhelming figures from the company’s Software as a Service (SaaS) segment.

The analysts also expressed encouragement about ResMed’s decision to raise the low end of its gross margin guidance for fiscal 2026. To them, this move is evidence of improving profitability expectations for the remainder of the year despite already maintaining a healthy gross profit margin of 60.69%.

On the same day, January 30, RBC Capital Markets raised its price target on ResMed to $314 from $311. The firm left the Outperform rating on the stock unchanged.

RBC Capital raised ResMed’s price target after strong quarterly results. The company posted double‑digit growth in revenue and earnings, beating estimates. RBC highlighted solid performance across markets, improving margins, and operating leverage. It kept an Outperform rating, citing ResMed’s earnings outlook, fair valuation, and potential shareholder returns.

ResMed Inc. (NYSE:RMD) develops and manufactures medical devices and digital health solutions for sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions. Its products include CPAP machines, masks, and cloud-connected software platforms that enable remote patient monitoring and management.

While we acknowledge the potential of ResMed Inc. (NYSE:RMD) 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 RMD and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Foreign Stocks to Buy Right Now and 11 Best AI Penny Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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