Latest news with #DeepSeek-triggered
Yahoo
27-02-2025
- Business
- Yahoo
Joshua Brown on DeepSeek Impact: ‘End of Nvidia Corp (NVDA)' Rhetoric is ‘Overdone'
We recently published a list of . In this article, we are going to take a look at where Nvidia Corporation (NASDAQ:NVDA) stands against other stocks that analysts are talking about. Gene Munster from Deepwater Asset Management said in a latest program on CNBC that the AI hardware trade is still intact and the analyst believes DeepSeek is a net positive for the industry. 'The consensus DeepSeek has been a positive for AI. I think when it comes to the cost of AI inference, it's going to go through the floor. Sam Altman said after DeepSeek that they expect the cost of tokens to go down 10 to 12x per year for their second-tier model. I mean, that's basically through the floor. And I think the third piece to this, if those two happen, we get this hardware build-out, we the cost of compute or the cost of inference declining. I think you're going to see some just profound impacts. And so I'm still bullish on this market. I think that what we're seeing right now is a funk, and I think that we still got two great years left of this AI trade.' READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In For this article, we picked 10 AI stocks currently making moves on the back of the latest news. With each stock, we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A close-up of a colorful high-end graphics card being plugged in to a gaming Brown, the CEO and Co-founder of Ritholtz Wealth Management, said while talking to CNBC following the DeepSeek-triggered selloff that the Chinese breakthrough will increase the usage of AI. However, he believes the chances of major companies using the Chinese model for their Cloud operations are thin. Overall, Brown believes the hype around the potential impact of DeepSeek on Nvidia Corporation (NASDAQ:NVDA) was overdone. 'Most of this conversation about the impact of deep seek is happening on Twitter. If you know anything about Twitter—X—if you know anything about X, you know it's loaded with hedge fund managers and asset managers who absolutely loathe the Mag 7. They've been waiting for this moment for two years. These stocks, Nvidia in particular, have been making them look bad for 24 straight months, and they're dying for this moment where small caps are up, Europe is flat, value stocks are outperforming growth. They view this as comeuppance for the people who have been riding these giant tech stocks to huge gains. I think because there's that desire to see these investors get beaten up a little bit, maybe that's why some of the rhetoric about this being the end of Nvidia is getting so overdone.' Mairs & Power Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its : 'We prefer to invest in our backyard, as Minnesota and the Upper Midwest are blessed with a rich and diverse business community. As such, seven out of our 10 largest relative bets are based in our region (MN, WI, IA, SD, ND, IL). That said, we are unafraid to look beyond our geographic area if we find exceptional opportunities. In 2019, we found such an opportunity in a graphics processing technology company called NVIDIA Corporation (NASDAQ:NVDA). At the time, we felt NVIDIA would be a good way to leverage the growing interest in video games, as most of its chips were popular amongst 'gamers' to enhance graphics. But what really grabbed our interest was its smaller, albeit faster-growing, data center business that was positioned to benefit from the emergence of high-performance computing, such as deep learning and machine learning, and the related field of AI. The rest, as they say, is history. NVIDIA is one of a number of Technology holdings that we have added over the past decade, which has raised eyebrows since our Firm was well-known for avoiding the Tech Bubble in the late 1990s. Unlike the dot-com companies that operated at the turn-of-the-century, many of today's technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.' Overall, NVDA ranks 3rd on our list of stocks that analysts are talking about. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that under the radar 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Reuters
05-02-2025
- Business
- Reuters
Wall Street shows its 'bouncebackability': McGeever
ORLANDO, Florida, Feb 5 (Reuters) - "Bouncebackability." This Britishism is usually associated with cliche-prone soccer managers trumpeting their teams' ability to respond to defeat. It's unlikely to find its way across the pond into the Wall Street crowd's lexicon, but it perfectly sums up the U.S. stock market's resilience to all the setbacks, shocks and everything else that's been thrown at it recently. And there have been a lot: U.S. President Donald Trump's tariff flip-flops, stretched valuations, extreme concentration in Big Tech and the DeepSeek -led turmoil that recently cast doubt on America's "exceptionalism" in the global AI arms race. Any one of those issues still has the potential to snowball, causing an avalanche of selling that could push U.S. equities into a correction or even bear-market territory. But Wall Street has become remarkably resilient since the 2022 rout, especially in the last six months. Just look at the artificial intelligence-fueled turmoil on Jan. 27, spurred by Chinese startup DeepSeek's revelation that it had developed a large language model that could achieve similar or better results than U.S.-developed LLMs at a fraction of the cost. By many measures, the market move was seismic. Nvidia shares fell 17%, slicing nearly $600 billion off the firm's market cap, the biggest one-day loss for any company ever. The value of the wider U.S. stock market fell by around $1 trillion. Drilling deeper, analysts at JPMorgan found that the rout in "long momentum" - essentially buying stocks that have been performing well recently, such as tech and AI shares - was a near "seven sigma" move, or seven times the standard deviation. It was the third-largest fall in 40 years for this trading strategy. But this epic move didn't crash the market. Rotation into other sectors accelerated, and around 70% of S&P 500-listed stocks ended the day higher, meaning the broader index fell only 1.45%. And buyers of tech stocks soon returned. U.S. equity funds attracted nearly $24 billion of inflows last week, technology fund inflows hit a 16-week high, and momentum funds attracted positive flows for a fifth-consecutive week, according to EPFR, the fund flows tracking firm. "Investors saw the DeepSeek-triggered selloff as an opportunity rather than an off-ramp," EPFR director of research Cameron Brandt wrote on Monday. "Fund flows ... suggest that many of those investors kept faith with their previous assumptions about AI." PANIC MODE? Remember "yenmageddon," the yen carry trade volatility of last August? The yen's sudden bounce from a 33-year low against the dollar sparked fears that investors would be forced to sell assets in other markets and countries to cover losses in their huge yen-funded carry trades. The yen's rally was extreme, on par with past financial crises, and the Nikkei's 12% fall on Aug. 5 was the biggest one-day drop since October 1987 and the second-largest on record. The panic, if it can be called that, spread. The S&P 500 lost 8% in two days. But it vanished quickly. The S&P 500 recouped its losses within two weeks, and the Nikkei did likewise within a month. So Wall Street has passed two big tests in the last six months, a period that included the U.S. presidential election and Trump's return to the White House. What explains the resilience? There's no one obvious answer. Investors are broadly bullish about Trump's economic agenda, the Fed still seems to be in easing mode (for now), the AI frenzy and U.S. exceptionalism narratives are still in play, and liquidity is plentiful. Perhaps one key driver is a well-worn one: the Fed put. Investors – many of whom have spent a good chunk of their working lives in the era of extraordinarily loose monetary policy – may still feel that, if it really comes down to it, the Fed will have their backs. There will be more pullbacks, and risks of a more prolonged downturn do seem to be growing. But for now, the rebounds keep coming. That's bouncebackability. (The opinions expressed here are those of the author, a columnist for Reuters.) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
Yahoo
30-01-2025
- Business
- Yahoo
Is Amazon.com (AMZN) the Ultimate Long-Term Tech Winner?
We recently published a list of . In this article, we are going to take a look at where Inc. (NASDAQ:AMZN) stands against other AI stocks analysts are focusing on these days. Dennis Unkovic, a partner at Meyer, Unkovic & Scott, said in a latest program on CNBC that DeepSeek is the result of President Xi Jinping's policy of prioritizing AI and tech research over the past few years. The analyst believes DeepSeek is the response of China to American tariffs. 'Today, if you take technology, maybe two-thirds of it is Western and one-third of it is Chinese. It's clear to me that what the Chinese want to do is move the needle so they're at least 50/50. What this means…. in the future, is you're going to have a country that's going to have to say, what kind of technology do I want to adopt? Is it technology from the West, or is it technology from China? So I think this is a strong opening salvo of the Chinese to the U.S., saying, if you want to put tariffs on me, this is the way we're going to go.' READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In For this article, we picked 10 AI stocks that are trending amid the DeepSeek-triggered selloff that rocked the markets. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). Ttatty / Niles, Niles Investment Management founder & portfolio manager, recently said on CNBC that (NASDAQ:AMZN) is a long-term winner in the tech industry. Vulcan Value Partners stated the following regarding Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter: 'There were five material contributors to performance: Inc. (NASDAQ:AMZN), Salesforce Inc., Live Nation Entertainment Inc., Carlyle Group Inc., and Alphabet Inc. is a dominant, world class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. The market is beginning to reward the company for its untapped margin opportunity in the core retail business as its consolidated operating margins expanded.' Overall, AMZN ranks 1st on our list of AI stocks analysts are focusing on these days. While we acknowledge the potential of AMZN, our conviction lies in the belief that under the radar 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 AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-01-2025
- Business
- Yahoo
Why Do Cathie Wood and Nancy Pelosi Love This Small AI Stock?
We recently published a list of . In this article, we are going to take a look at where Tempus AI, Inc (NASDAQ:TEM) stands against other AI stocks analysts are focusing on these days. Dennis Unkovic, a partner at Meyer, Unkovic & Scott, said in a latest program on CNBC that DeepSeek is the result of President Xi Jinping's policy of prioritizing AI and tech research over the past few years. The analyst believes DeepSeek is the response of China to American tariffs. 'Today, if you take technology, maybe two-thirds of it is Western and one-third of it is Chinese. It's clear to me that what the Chinese want to do is move the needle so they're at least 50/50. What this means…. in the future, is you're going to have a country that's going to have to say, what kind of technology do I want to adopt? Is it technology from the West, or is it technology from China? So I think this is a strong opening salvo of the Chinese to the U.S., saying, if you want to put tariffs on me, this is the way we're going to go.' READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In For this article, we picked 10 AI stocks that are trending amid the DeepSeek-triggered selloff that rocked the markets. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). Copyright: nexusplexus / 123RF Stock PhotoCathie Wood is piling into little-known AI stock Tempus AI, Inc. (NASDAQ:TEM), amassing about 600,000 shares across multiple funds since early 2025. Tempus AI, Inc. (NASDAQ:TEM) now accounts for 3.2% of ARKK's assets, with a market value topping $265 million. Tempus AI, Inc. (NASDAQ:TEM) uses AI for precision medicine and diagnostics. The company works with 2,500 institutions to gather real-time clinical data from millions of cancer patients. Its products are broadly divided into three segments: Genomics, Data, and Applications. The Genomics segment focuses on conducting diagnostic tests to match therapies and compare treatments for similar patients, with billing handled directly through insurance or payers. Tempus AI, Inc. (NASDAQ:TEM) has a significant revenue base. Recently, Tempus AI acquired Ambry Genetics, which specializes in hereditary cancer testing, allowing the company to expand into new areas such as rare disorders, pediatrics, and cardiology. Tempus AI, Inc. (NASDAQ:TEM) recently provided preliminary guidance for fourth-quarter revenues of approximately $200 million, bringing total revenues for the year to around $693 million. While consensus estimates had projected slightly over $206 million for the quarter to meet the original $700 million target for 2024, revenues still rose 30% year over year for the quarter. Baron Discovery Fund stated the following regarding Tempus AI, Inc. (NASDAQ:TEM) in its Q3 2024 investor letter: 'Shares of Tempus AI, Inc. (NASDAQ:TEM) contributed to performance. Tempus is a cancer diagnostics company that provides genomic testing results. Tempus has also amassed an over 200 petabyte proprietary multimodal dataset that combines clinical patient data with genomic testing data. In addition to using this data to empower more intelligent diagnostics for its own tests, Tempus also licenses this data to biopharmaceutical companies which use it to design smarter clinical trials and identify potential new drug targets. We think this proprietary dataset is unique with meaningful barriers to entry, and brings meaningful value to biopharmaceutical R&D. As we mentioned in the letter from last quarter, shares have been incredibly volatile. We took advantage of this volatility to buy a meaningful position when shares sold off into the low $20's per share from an IPO price of $37. When shares spiked into the mid-$70's (likely due to short sellers covering losses as shares rose), we took profits on a meaningful portion of the investment as we believed valuation had become stretched (shares now trade in the high $40's to low $50's level). We like our position sizing now, and would add to the position at lower valuations. We believe that Tempus has significant growth ahead of it and we are excited about its unique business model.' Overall, TEM ranks 10th on our list of AI stocks analysts are focusing on these days. While we acknowledge the potential of TEM, our conviction lies in the belief that under the radar 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 TEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
29-01-2025
- Business
- Yahoo
Dan Niles Says Meta Platforms (META) is Using AI ‘The Best'
We recently published a list of . In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other AI stocks analysts are focusing on these days. Dennis Unkovic, a partner at Meyer, Unkovic & Scott, said in a latest program on CNBC that DeepSeek is the result of President Xi Jinping's policy of prioritizing AI and tech research over the past few years. The analyst believes DeepSeek is the response of China to American tariffs. 'Today, if you take technology, maybe two-thirds of it is Western and one-third of it is Chinese. It's clear to me that what the Chinese want to do is move the needle so they're at least 50/50. What this means…. in the future, is you're going to have a country that's going to have to say, what kind of technology do I want to adopt? Is it technology from the West, or is it technology from China? So I think this is a strong opening salvo of the Chinese to the U.S., saying, if you want to put tariffs on me, this is the way we're going to go.' READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In For this article, we picked 10 AI stocks that are trending amid the DeepSeek-triggered selloff that rocked the markets. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). Photo by Timothy Hales Bennett on UnsplashDan Niles, Niles Investment Management founder & portfolio manager, gave his bullish views on Meta Platforms, Inc. (NASDAQ:META) in a recent program on CNBC. 'If you're going to want to trade around it from a longer-term perspective, you know Meta Platforms (NASDAQ:META) is using AI the best, and you're seeing that in the performance this year where it's up 11%. And you had numbers go up all last year despite them taking up capex all last year.' Niles said that Meta Platforms (NASDAQ:META) is a 'long-term winner' among the major tech companies. Meta Platforms (NASDAQ:META) is driving usage and ads revenue by improving its algorithms and user experience thanks to AI. Meta also reported strong adoption of its Llama AI model, attracting over 500 million monthly active users across its platforms. This progress positions Meta well for robust profitability in the next two years as it scales its AI infrastructure. Meta Platforms (NASDAQ:META)'s advancements in Reels and WhatsApp are helping manage CapEx growth as the company strives to stay competitive in AI. Meta Platforms (NASDAQ:META)'s clear monetization strategy for its generative AI, especially with Llama3, makes it a strong contender against rivals like OpenAI's ChatGPT. Meta Platforms (NASDAQ:META)'s substantial user base of 3.3 billion provides a data and distribution edge that could capture a significant share of the GenAI market. Although short-term investors may be concerned about Meta Platforms (NASDAQ:META)'s increased AI spending, its forward P/E ratio of 24x, based on FY 2025 EPS estimates of $24.62, makes it the second-most affordable big tech stock, after Google, within its peer group (Apple, Amazon, Microsoft, and Google). Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter: 'Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period. Overall, META ranks 3rd on our list of AI stocks analysts are focusing on these days. While we acknowledge the potential of META, our conviction lies in the belief that under the radar 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 META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
