NIKE, Inc. (NYSE:NKE) is among the 12 Best DOW Stocks to Buy in 2026. RBC Capital Markets lowered its price target on Nike to $78 from $85 but maintained an Outperform rating, citing a path to profitable growth despite challenges in Greater China, Converse weakness, and US tariffs.

Nike shares have dropped nearly 17% in 2025, with concerns rising about the company’s dependence on China for manufacturing. Roughly 18% of Nike’s footwear is produced in China, contributing to cost control and margin growth over the years. However, this strategy has led to challenges such as counterfeiting and brand dilution.

The reliance on outsourced manufacturing is impacting Nike’s results, with a 20% decline in footwear sales in China in the fiscal second quarter. The company’s once robust growth market is now facing a prolonged period of decline, highlighting the risks of dependency on a single manufacturing region.

Despite its challenges, NIKE, Inc. (NYSE:NKE) remains a global leader in athletic footwear, apparel, and accessories. The company continues to design, market, and distribute products for sports and fitness enthusiasts worldwide, maintaining a strong brand presence in the industry.

While acknowledging the potential of investing in Nike, some analysts believe that other AI stocks may offer greater upside potential and lower downside risk. Investors seeking opportunities in undervalued AI stocks with potential tariff benefits and onshoring trends may find value in exploring alternative investment options.

Read more at Yahoo Finance: RBC Lowers Nike (NKE) Target but Sees Path to Profitable Growth Intact