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Was This Analyst’s Prediction About Kraft Heinz (KHC) Wrong?

We recently published 10 Stocks Moving on Buzzing News as Analyst Issues Strong Warning About AI Valuations. The Kraft Heinz Company (NASDAQ:KHC) is one of the stocks moving on buzzing news.

In August 2024, Dave Sekera, Morningstar’s Chief U.S. Market Strategist, said during a program on CNBC that Kraft Heinz Co (NASDAQ:KHC) was attractive and gave the stock his highest rating. The analyst at the time also talked about the stock’s valuation:

“Kraft Heinz is one that I find especially attractive today. It’s a five-star rated stock, that’s our highest rating, and it trades at about a 37% discount to our fair value and provides a 4.5% dividend yield. We recently upgraded our economic moat rating on that stock. The economic moat rating to narrow means that we think that company can generate excess returns on invested capital for at least the next 10 years before they get competed away. The investment thesis coming from our team here is that the company has really switched its strategy. They’re really looking to drive more long-term profitable growth.”

Kraft Heinz Co (NASDAQ:KHC) is down about 20% over the past 12 months.

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding The Kraft Heinz Company (NASDAQ:KHC) in its second quarter 2025 investor letter:

 “The Kraft Heinz Company (NASDAQ:KHC) is the third largest U.S. food and beverage company. KHC shares declined following mixed earnings results in the quarter. While organic sales growth over the medium term is likely to be just 1-2%, we believe the company can also make bolt-on acquisitions and share repurchases to further ensure positive earnings per share (EPS) growth. Modest EPS growth combined with a dividend yield above 4% should result in a competitive total return.”

While we acknowledge the risk and potential of KHC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KHC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI 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.

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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