Wells Fargo Sees Pricing Recovery and Market Share Gains for Nucor (NUE)

Nucor Corporation (NYSE:NUE) is included among the 14 Best Dividend Growth Stocks to Buy and Hold in 2026.

On December 18, Wells Fargo analyst Timna Tanners lowered the price target on Nucor Corporation (NYSE:NUE) to $176 from $178 and kept an Overweight rating on the shares. Management’s Q4 guidance came in lighter than the firm’s already cautious view, largely due to contract timing that affects about 80% of sheet shipments. Even so, Wells expects investors to look past the near-term softness. The firm sees stronger pricing ahead and continued market share gains as lower imports support the setup for 2026.

A new construction cycle is starting to lift the steel sector. During the third-quarter earnings call, Nucor’s management pointed to “high-growth markets, like data center construction,” as a key driver that continues to support demand.

Data centers are not the only source of long-term growth. Expansion plans are also coming from outside the tech space. Eli Lilly recently outlined plans for a third new facility as part of a broader push to build four new manufacturing plants in the US. Construction on the $6 billion project is expected to begin in 2026. The site will be in Huntsville, Alabama, roughly 30 miles from Decatur. Nucor Corporation (NYSE:NUE) operates a major flat-rolled steel mill in Decatur, which makes its potential involvement in the Eli Lilly project a logical fit.

Large capital projects like these are encouraging for steel producers such as Nucor. At the same time, investors tend to watch supply just as closely as demand. Steel pricing, like other commodities, is shaped by that balance. As construction announcements point to rising demand, steelmakers are preparing to add capacity. Nucor is building a large new mill in West Virginia and says it remains on track to begin ramping production by the end of next year.

Nucor Corporation (NYSE:NUE) is North America’s largest steel producer and recycler. The company makes products such as rebar, structural steel, and sheet steel, relying mainly on recycled scrap and electric arc furnaces, which also helps keep its carbon footprint lower.

While we acknowledge the potential of NUE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 12 Best Income Stocks to Buy Now and 20 Best Performing Dividend Stocks in 2025

Disclosure: None.