AI Robot Trader Ditched Nvidia Stock but Picked Apple and Alphabet. Here's Why.

Written by Emily J. Thompson, Senior Investment Analyst

CMG-0.44%

SPMO+0.25%

NVDA+0.83%

Source: Barron's

Updated: Oct 16 2024

0mins

Source: Barron's

AI-Enhanced Investment Strategies: Qraft Technologies, a South Korean fintech firm, utilizes AI models to manage its U.S. large-cap momentum ETF (AMOM), which has outperformed the S&P 500 this year by focusing heavily on tech stocks like Apple and Nvidia.
Market Dynamics and Performance: Despite strong returns, AMOM's strategy faced challenges with Tesla's stock post-Robotaxi event, highlighting the potential advantages of AI in processing data objectively, while also demonstrating the risks associated with market volatility and momentum investing.

CMG

$40.54+Infinity%1D

Analyst Views on CMG

Wall Street analysts forecast CMG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMG is 45.95 USD with a low forecast of 35.00 USD and a high forecast of 56.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

25 Analyst Rating

18 Buy

7 Hold

0 Sell

Moderate Buy

Current: 40.720

Low

35.00

Averages

45.95

High

56.00

Current: 40.720

Low

35.00

Averages

45.95

High

56.00

Wells Fargo

Overweight

maintain

$45 -> $50

2026-01-22

New

Reason

Wells Fargo

Price Target

$45 -> $50

AI Analysis

2026-01-22

New

maintain

Overweight

Reason

Wells Fargo raised the firm's price target on Chipotle to $50 from $45 and keeps an Overweight rating on the shares. While there's reason to look past mixed Q4 results, the firm believes clear winners/ losers will likely set the 2026 tone. Wells sees Casual Dining outperforming, innovation driving QSR, and Fast Casual inflection pushed out.

Raymond James

Outperform

maintain

$40 -> $45

2026-01-21

New

Reason

Raymond James

Price Target

$40 -> $45

2026-01-21

New

maintain

Outperform

Reason

Raymond James raised the firm's price target on Chipotle to $45 from $40 and keeps an Outperform rating on the shares. Restaurant stocks have sharply outperformed year to date on a January comp rebound, optimism around an easier first-half setup, and significant short covering, despite expectations for mixed Q4 results due to softer demand, the analyst tells investors in a research note. Focus is shifting to early-2026 trends and guidance, with potential support from higher tax refunds and stable employment, balanced by uncertainties around GLP-1 usage, weather effects, and broader macro volatility, the firm says.

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Citi

Buy

maintain

$44 -> $48

2026-01-19

New

Reason

Citi

Price Target

$44 -> $48

2026-01-19

New

maintain

Buy

Reason

Citi raised the firm's price target on Chipotle to $48 from $44 and keeps a Buy rating on the shares as part of a Q4 earnings preview. The firm believes the Q4 report should bring a multi-year "comp trough" for Chipotle. The company is well positioned for the main culinary themes, including weight loss drugs and the attention on protein, the analyst tells investors in a research note.

Telsey Advisory

Outperform

initiated

$50

2026-01-09

Reason

Telsey Advisory

Price Target

$50

2026-01-09

initiated

Outperform

Reason

Telsey Advisory initiated coverage of Chipotle (CMG) with an Outperform rating and $50 price target. The restaurant industry experienced slower consumer spending in 2025, but in 2026 the firm expects moderate improvement in restaurant trends as consumer spending benefits from higher tax refunds and lower interest rates. Company-specific initiatives also should fuel growth, adds the analyst, who prefers restaurants with strong unit growth and excellent execution, such as Cava (CAVA), Chipotle and Dutch Bros (BROS).

About CMG

Chipotle Mexican Grill, Inc. is a restaurant company. The Company develops and operates restaurants that serve a menu of burritos, burrito bowls, quesadillas, tacos, and salads, made using fresh ingredients. The Company operates approximately 3839 restaurants in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and United Arab Emirates. It owns and operates all its restaurants in North America and Europe. The Company is focused in serving sourced, classically cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. Its menu includes Burrito, Burrito Bowl, Lifestyle Bowl, Quesadilla, Salad, Tacos, Kid’s Meal, Chips and Sides, and Build your Own (digital only). It also includes Raymonte’s Chicken Bowl, The Mr. Fantasy Burrito, Carne Asada, Build-Your-Own Chipotle, catering and group order. Its subsidiaries include Chipotle Mexican Grill Canada Corp., Chipotle Mexican Grill France SAS, among others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.