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    Buffett-Style Spotlight on Nucor’s Infrastructure Role Might Change The Case For Investing In Nucor (NUE)

    Simply Wall St·01/06/2026 16:24:04
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    • Nucor has recently been highlighted as aligning with Warren Buffett’s two-step test for stock selection, with commentators suggesting it could benefit from ongoing U.S. infrastructure spending.
    • This association with Buffett’s investment principles has drawn fresh investor attention to how Nucor’s earnings quality and valuation stack up against long-term expectations.
    • We’ll now examine how this Buffett-linked attention, especially around Nucor’s potential infrastructure tailwinds, may influence its existing investment narrative.

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    Nucor Investment Narrative Recap

    To own Nucor, you generally need to believe in resilient U.S. steel demand, disciplined capital allocation, and the company’s ability to turn cyclical earnings into solid cash flows. The Buffett-style spotlight tied to potential infrastructure spending does not materially change the near term picture, where demand sensitivity to the broader economy remains a key catalyst and execution on new projects, such as the West Virginia sheet mill, stands out as a major operational risk.

    Against this backdrop, Nucor’s December 2025 dividend increase to US$0.56 per share is the most relevant recent announcement, because it directly intersects with the Buffett-inspired focus on earnings quality and shareholder returns. While it does not remove the earnings volatility risk or the execution risk on growth projects, it does highlight management’s confidence in the company’s ability to continue supporting cash distributions to shareholders.

    But with macro driven steel demand still a swing factor, investors should be aware that...

    Read the full narrative on Nucor (it's free!)

    Nucor's narrative projects $37.2 billion revenue and $3.7 billion earnings by 2028.

    Uncover how Nucor's forecasts yield a $177.08 fair value, a 5% upside to its current price.

    Exploring Other Perspectives

    NUE 1-Year Stock Price Chart
    NUE 1-Year Stock Price Chart

    Seven fair value estimates from the Simply Wall St Community span roughly US$140 to US$591 per share, showing how far apart individual views can be. When you set those opinions against Nucor’s reliance on broader economic conditions for steel demand, it underlines why many investors compare several perspectives before deciding how this stock might fit their expectations.

    Explore 7 other fair value estimates on Nucor - why the stock might be worth 17% less than the current price!

    Build Your Own Nucor Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.