My top 10 things to watch Monday, Jan. 27 1. Artificial intelligence stocks are plunging as Wall Street grapples with the ascent of DeepSeek, a Chinese startup that possibly built a competitive AI model for much less money than the American tech giants are spending on their pursuits. Nasdaq futures are down almost 4%. The S & P 500 is sliding more than 2%. The Dow, holding up relatively better, is set to open 400 points lower. 2. Today is why we sell parabolic moves at the Investing Club, and why we have been going after the Bristol Myers Squibbs of the world and not constantly adding to Nvidia. We trimmed Club name Nvidia in early January, locking in a nearly 1,000% gain, and we also took profits in both Microsoft and Google parent Alphabet in December, lowering each stock’s weighting in our portfolio, as I explained during last week’s January Monthly Meeting . 3. There’s data center panic thanks to DeepSeek’s emergence, and all stocks in that popular trade are getting hit hard. Nvidia, the AI chip king, is down 11% in the premarket. Is Nvidia through? How about the providers of other data center technology, like electrical equipment supplier Eaton , which is tumbling almost 9%? How about the companies aggressively spending to build new data centers, such as Meta Platforms , which is down about 2.5%? 4. The answers to these questions are not fully clear yet, as I wrote in my Sunday column for Club subscribers. But if DeepSeek really built its model for so much less, then the Street’s estimates for Nvidia’s sales are now too high. The startup claims the open-source model was trained on older versions of Nvidia chips, which may reduce the value of its next-gen Blackwell AI platform or, at least, cause a pause in orders. That fear is why we’re seeing Nvidia sell off so hard. 5. Citi maintained its buy rating on Nvidia. DeepSeek’s achievement “could be groundbreaking,” the analysts said, but they questioned the idea that the model could’ve been built without the use of advanced Nvidia chips. Analysts at Cantor Fitzgerald said they would be buyers on Nvidia’s weakness, arguing DeepSeek is actually “very bullish” for the chipmaker because it can help make AI more ubiquitous. 6. DeepSeek passed OpenAI’s ChatGPT as the No. 1 free app in Apple’s App Store. I found it rather lacking in intelligence when I tried it, but it is a force in the marketplace. Did Meta CEO Mark Zuckerberg know about it last week when he announced the Club name planned to spend between $60 billion to $65 billion on CapEx this year? How about Oracle’s Larry Ellison when he appeared at the White House announcing the massive Stargate Project for data centers? 7. Melius Research initiated coverage of Marvell Technology with a buy rating, saying it is the next chipmaker that can significantly grow thanks to its expanding custom AI chip business. I like Marvell, which has been on my watchlist for a while now, but this may not be the day to start buying. 8. Outside of AI, GE Aerospace landed a price target bump from Bank of America, which went to $225 a share from $200. Citi also went to $235 from $216. Both shops reiterated their buy ratings. BofA argued that 2025 will big a strong year for GE’s commercial engine deliveries while its aftermarket services business is still doing well. 9. Stifel upped its price target on Starbucks to $114 from $110 and reiterated its buy rating ahead of earnings Tuesday night. Analysts downplayed any short-term concerns about tariffs and coffee prices, and instead said they expect to see signs of improving U.S. same-store sales in the coming months, which would be good for the Club stock. 10. Bank of America downgraded Air Products to a hold-equivalent neutral rating from buy in the wake of an activist-led board shakeup. CEO Seifi Ghasemi was not reelected to the board. We own Air Products rival Linde for the Club. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) 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.
Nvidia CEO Jensen Huang holds a Blackwell GeForce RTX 50 Series GPU (L) and a RTX 5000 laptop as he delivers a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2025.Â
Patrick T. Fallon | Afp | Getty Images
My top 10 things to watch Monday, Jan. 27
1. Artificial intelligence stocks are plunging as Wall Street grapples with the ascent of DeepSeek, a Chinese startup that possibly built a competitive AI model for much less money than the American tech giants are spending on their pursuits. Nasdaq futures are down almost 4%. The S&P 500 is sliding more than 2%. The Dow, holding up relatively better, is set to open 400 points lower.
2. Today is why we sell parabolic moves at the Investing Club, and why we have been going after the Bristol Myers Squibbs of the world and not constantly adding to Nvidia. We trimmed Club name Nvidia in early January, locking in a nearly 1,000% gain, and we also took profits in both Microsoft and Google parent Alphabet in December, lowering each stock’s weighting in our portfolio, as I explained during last week’s January Monthly Meeting.
3. There’s data center panic thanks to DeepSeek’s emergence, and all stocks in that popular trade are getting hit hard. Nvidia, the AI chip king, is down 11% in the premarket. Is Nvidia through? How about the providers of other data center technology, like electrical equipment supplier Eaton, which is tumbling almost 9%? How about the companies aggressively spending to build new data centers, such as Meta Platforms, which is down about 2.5%?
