Markets – Digitex Solutions

We’re buying the dip in an AI data center play still under pressure post-DeepSeek

digitex — Fri, 21 Feb 2025 20:36:13 +0000

We’re buying 25 shares of Eaton just below $300 each. Following Friday’s trade, Jim Cramer’s Charitable Trust will own 325 shares of ETN, increasing its weighting to about 2.7% from about 2.5%. Friday’s market losses picked up steam in the afternoon with momentum stocks continuing to roll over and cyclical stocks falling on weakening economic data. Fortunately, we have limited the impact of these losses by building up a huge war chest of cash. It’s no secret that the economy has slowed over the past few weeks. Using the Atlanta Fed GDPNow forecast as a guide, the latest estimate of first-quarter economic growth is 2.3%, down from a 3.9% estimate on Feb. 3. We’re not surprised to see consumer discretionary and industrials as two of the worst-performing sectors this month. However, we do expect the economic slowdown to be short-lived. So, we’re dipping into our cash hoard to beef up one of those beaten-down industrial names, which makes electrical components and power management systems used to run energy-intensive AI data centers. With Eaton shares trading below their DeepSeek freakout levels, we see this as an opportunity to buy more. ETN 1Y mountain Eaton 1 year The first instinct when the Chinese startup claimed that it made a more efficient, lower-cost large language model was that the world wouldn’t need as many data centers to power artificial intelligence. Since data centers are one of Eaton’s largest end markets and one of the company’s fastest-growing, the DeepSeek news on Jan. 27 caused shares to fall 15% to about $311 each. Unlike Club AI chip king Nvidia , whose stock has recovered most of its DeepSeek losses, Eaton shares have a longer road to recovery. However, as we’ve learned in recent weeks, there has been zero change in the spending habits of the big tech hyperscalers building out these data centers. In fact, these titans plan to invest more money in their AI infrastructure in 2025 versus last year Club names Amazon , Microsoft , Meta Platforms , and Alphabet all raised their capital expenditure outlooks for this year, erasing concerns that one would break ranks and slow down their investments. We also heard Eaton’s thoughts on the subject when the company reported strong earnings on Jan. 31. During the quarterly conference call, management explained that a shift toward more inferencing data centers and away from training specialized data centers would be a positive development for the business because it would speed up construction times without a change in the amount of electrical needed. In short, DeepSeek’s impact on the pace of AI infrastructure investment has been overblown. And, that’s why we are buyers of Eaton, a stock we believe in for the long haul. (Jim Cramer’s Charitable Trust is long ENT, AMZN, MSFT, META, GOOGL, NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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Meta Reduces Stock Options For Staff Despite Trading At Record Highs- FT -February 20, 2025 at 05:34 pm EST

digitex — Fri, 21 Feb 2025 07:20:18 +0000

Market Closed –

Nasdaq

04:00:00 2025-02-20 pm EST

5-day change

1st Jan Change

694.84 USD

-1.27%

-4.63%

+18.67%

February 20, 2025 at 05:34 pm EST

Meta reduces stock options for staff despite trading at record highs, FT reports

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Meta reduces stock options for staff despite trading at record highs, FT reports

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DurationAuto.2 months3 months6 months9 months1 year2 years5 years10 yearsMax.PeriodDayWeek
META: Dynamic Chart

Meta Platforms, Inc. specializes in online social networking services. Net sales break down by activity as follows:

– operation of social networking, messaging, photo and video sharing platforms (98.6%): operation of the Facebook, Instagram, Messenger, Threads and WhatsApp platforms (3.98 billion monthly active users in 2023) ;

– sale of virtual and augmented reality products, software and devices (1.4%): virtual reality headsets (Meta Quest), connected screens (Facebook Portal), wearable devices, etc.

Net sales break down by source of income into advertising spaces (97.5%) and other (2.2%).

Net sales are distributed geographically as follows: the United States and Canada (39.2%), Asia-Pacific (26.8%), Europe (23.1%) and other (10.9%).

More about the company
SellBuyLast Close Price 694.84USDAverage target price 762.74USDSpread / Average Target+9.77%Consensus OUR EXPERTS ARE HERE FOR YOUMonday – Friday 9am-12pm / 2pm-6pm GMT + 1

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ASML CEO sees low-cost AI models like DeepSeek driving more demand

digitex — Wed, 29 Jan 2025 11:32:28 +0000

Dutch semiconductor equipment maker ASML expects new low-cost models like the one rolled out by China’s DeepSeek to lead to more — rather than less — demand for AI chips, CEO Christophe Fouquet told CNBC Wednesday.ASML beat estimates on both sales and profit for the fourth quarter and said it had an order backlog of roughly 36 billion euros ($37.4 billion) at the end of 2024. The news prompted a jump in the firm’s shares as investor fears that DeepSeek’s model could cool semiconductor spending ebbed.Without addressing the specifics of DeepSeek’s newly revealed R1 model — which took the tech world by storm with performance benchmarks rivalling leading U.S. players at a fraction of the cost — Fouquet said that he sees no sign of a slowdown in demand for AI-focused chips.”A lower cost of AI could mean more applications. More applications means more demand over time. We see that as an opportunity for more chips demand,” Fouquet said in an interview with CNBC’s Arjun Kharpal.”For the hyperscaler, the capex [capital expenditure] is today spent for investment,” he said. “They are investing heavily in R&D [research and development]. They continue to want to do that.”Hyperscalers refers to cloud computing giants such as Microsoft, Amazon and Google which are investing heavily in the data center infrastructure that power AI models.Last week, DeepSeek released R1, an open-source reasoning model that claims to beat OpenAI’s o1 model on both cost and performance. Open-source software source code is made freely available on the open web for possible modification and redistribution.DeepSeek drama Growing awareness of DeepSeek’s new model caused a severe slump in technology stocks this week, amid concerns of a possible retrenchment in spending on the powerful graphics processing units required to train and run AI workloads.Nvidia lost close to $600 billion in market capitalization on Monday — the biggest single-day drop for any company in U.S. history — while ASML and other semiconductor stocks also notched heavy losses.Shares of both Nvidia and ASML have since recovered some ground later in the week.DeepSeek’s new AI model will benefit European chip stocks ‘counter intuitively,’ says JPMorganFouquet appeared unfazed by DeepSeek’s implications for both AI hyperscalers and chipmakers during the Wednesday interview. While acknowledging there is “a lot of discussion” surrounding DeepSeek, the ASML CEO said his company hasn’t heard from customers asking about the impact the Chinese firm’s model will have on chip demand.”For AI to really come to life in the next few years — not only with the hyperscalers, but with all of us in our phone, PC — we need AI to address two things: cost and energy consumption,” he told CNBC.”We believe that anything that will go in the direction of lowering cost on AI is, in fact, probably news because this will allow applications to go to many, many more devices,” Fouquet added.The DeepSeek reveal triggered questions over eyewatering spending from leading AI players such as OpenAI and Microsoft on Nvidia graphics processing units, which are needed to train and run the most advanced AI models.This could in turn hit demand for ASML’s high-precision extreme ultraviolet (EUV) machines, which are used to print the most advanced microchips. EUV tools accounted for 3 billion euros out of the 7.1 billion euros ASML reported in fourth-quarter net bookings.

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