Amid a tech-sector selloff sparked by the emergence of Chinese startup DeepSeek and its free AI offering, AT&T (NYSE: T) defied the downturn on Monday, climbing 6% after delivering strong fourth-quarter results. The telecom giant emerged as one of the top gainers in the S&P 500, driven by solid growth in its wireless and broadband businesses.AT&T’s one-day stock price. Source: Google FinanceAs of the market close on January 27, AT&T shares were trading at $24.14, reflecting a six-month increase of 24%. The ...

The stock market is still digesting the massive sell-off in technology equities as the emergence of the low-cost Chinese artificial intelligence (AI) model DeepSeek rattled investors.The correction emerged as investors questioned the high valuations of AI infrastructure developed by technology giants such as Nvidia (NASDAQ: NVDA), which recorded one of its most volatile trading days on January 27. Microsoft (NASDAQ: MSFT) was also caught in this melee, but the company recorded modest losses compared to peer ...

Market Reaction to DeepSeek - DeepSeek's R1 model has gained attention for matching the performance of leading Western AI models like OpenAI's ChatGPT at a fraction of the cost, developed using older Nvidia H800 chips for less than $6 million [2] - The emergence of DeepSeek has raised doubts about the sustainability of the multibillion-dollar AI spending spree in the US, leading to a 10.14% drop in Nvidia's share price in pre-market trading and a 15% decline on January 27 to $120.97 [3] Bank of America's Perspective - Bank of America remains optimistic about Nvidia and the semiconductor industry, stating concerns over DeepSeek's impact are overstated [1] - The firm emphasizes that cost-efficient AI models like DeepSeek's R1 still rely on foundational large language models (LLMs) such as Meta's open-source Llama, which require significant infrastructure investment [4] - Meta's plan to increase 2025 capital expenditures by over 56% to $60–$65 billion highlights the ongoing need for advanced technology to support foundational AI models [5] Semiconductor Industry Outlook - Bank of America maintains a bullish outlook on key semiconductor players, reiterating 'Buy' ratings on Broadcom and Marvell Technology for their critical roles in supplying AI infrastructure [6] - Citigroup analyst Atif Malik reaffirmed a 'Buy' rating on Nvidia with a $175 price target, expressing skepticism about DeepSeek's cost advantage and noting the likely use of advanced GPUs in model development [7] Industry Trends - Compute demand is expected to continue growing, driven by foundational models, derivative models using knowledge distillation and sparse attention, and large-scale inference applications across diverse industries [5]

Stock Performance and Market Context - AMD stock closed at $122.84 on January 24 but dipped to $117.11 by January 27, marking a 4.66% drop and bringing YTD losses to 3.05% [1] - Most semiconductor stocks, including AMD, saw greater losses on January 27 due to the release of China's DeepSeek large language model [2] - Despite the selloff, Wall Street firms remain bullish on the semiconductor sector, including AMD stock [3] Analyst Ratings and Price Targets - Wedbush analyst Matt Bryson reiterated an 'Outperform' rating for AMD but cut the price target from $200 to $150, implying a 28.08% upside from current prices [4] - The reduction in price target was due to moderated expectations for AMD's AI GPU sales, partially offset by increased server expectations [4][5] - The average Wall Street price target for AMD is $173.28, higher than Wedbush's target, while the Street low target is $110, set by HSBC on January 8 [6][8] - Citi also reiterated a 'Moderate Buy' rating for AMD on January 21 but cut its price target from $200 to $175 [8] Industry and Market Outlook - The long-term impact of China's entry into the AI market remains uncertain, and investors are advised to monitor AMD's next earnings call on February 4 for a clearer outlook [9]

Core View - The release of the Chinese AI model DeepSeek and its open-source decision has significantly disrupted the US tech sector, potentially marking a turning point in the AI revolution [1] - Nvidia's stock price experienced a sharp decline, dropping 11.70% to $125.94 in Monday pre-market trading, the lowest since October [1] - DeepSeek's technological breakthrough has sparked speculation about a potential US stock market bubble burst, as big tech's dominance may be challenged [2] Nvidia Stock Performance - Nvidia's stock price plunged significantly in the Monday pre-market, reaching its lowest point since October [1] - DeepSeek initially forecasted a 74.69% rally for Nvidia's stock by the end of 2025, setting a price target of $220 [4] - The AI model revised its price target to $180, a 42.93% increase from the current price, acknowledging potential competition but maintaining a bullish outlook [6] Market Impact - The release of DeepSeek has raised concerns about the sustainability of big tech's dominance in the AI industry, given the sector's high energy and computing power requirements [2] - The AI model's open-source nature could lead to increased competition, potentially limiting Nvidia's upside but not entirely halting its growth [6]

Stock Performance - Nvidia stock experienced its worst trading day in recent history, dropping from $142 62 on January 24 to as low as $125 96 in pre-market trading on January 27, marking a YTD loss of 6 20% [1] - The stock suffered an 11 68% loss due to a 'crisis of faith' in high AI capital expenditures, triggered by the rise of Chinese AI startup DeepSeek [2] DeepSeek's Impact - DeepSeek released its AI assistant app on January 10 and its latest LLMs, including DeepSeek-R1 and DeepSeek R1 Zero, on January 20 [2] - By January 27, DeepSeek became the top-rated free application in the US, surpassing OpenAI's ChatGPT, with models offering comparable performance at a fraction of the cost [3] - DeepSeek's models were trained using Nvidia's last-generation H800 GPUs, with a total development cost of only $5 57 million [3] Market Reaction - The semiconductor sector experienced a selloff, with Nvidia, a leading provider of AI chips, being one of the most affected companies [4] Analyst Perspectives - Citigroup analyst Atif Malik maintained a 'Buy' rating on Nvidia with a price target of $175, implying a 38 93% upside from current prices [6] - Malik expressed skepticism about DeepSeek's cost advantage, suggesting advanced GPUs were crucial for model development and fine-tuning [7] - Citigroup believes US-based AI companies have an inherent advantage due to access to cutting-edge chips [7] - Malik highlighted that recent capital expenditure announcements, such as Project Stargate, and the value of advanced GPUs for AI companies at scale will protect Nvidia from major disruptions [8] - Cantor Fitzgerald analyst C J Muse reiterated an 'Overweight' rating with a $200 price target, implying a 58 78% upside, viewing the development as bullish for Nvidia due to increased AI usage and compute demand [9]

Core Viewpoint - Michael Burry, known for predicting the 2008 subprime mortgage crisis, has recently increased his investment in JD.com, indicating a positive outlook on the company and the Chinese technology sector [1][2]. Company Summary - Burry has doubled his stake in JD.com to 500,000 shares valued at $20 million, with the stock trading positively in recent months [2]. - JD.com has seen a return of over 70% in the past year, with a strong start to 2025, gaining 18% [2]. - The company is projected to achieve nearly 20% growth in 2025, supported by its focus on global partnerships and digital innovation [3]. - JD.com has established partnerships with Chilean brands to enhance sales of premium products, which is part of its strategy to reduce import costs and improve quality [3][4]. - The company has a diverse portfolio, including electronics and general merchandise, and is well-positioned for market expansion [4]. - JD.com achieved over 20% year-over-year shopper growth during the 2024 Singles Day promotion, showcasing its strong market position [6]. - The firm's AI-powered supply chain and logistics network enhances its manufacturing and delivery operations [6]. Analyst Sentiment - Analysts are optimistic about JD.com, with Jefferies raising its price target from $54 to $60 while maintaining a "Buy" rating, citing strong Q4 management as a growth driver [7]. - BOCOM International has also increased its Q4 2024 revenue and profit forecasts by 3% and 12%, respectively, while maintaining a "Buy" rating [8]. - China Merchants Securities projects a 9% year-on-year revenue increase for JD.com [8]. Valuation Insights - JD.com's Price-to-Earnings (P/E) ratio is currently at 12.94, which is relatively low compared to its tech peers, suggesting it may be undervalued [9]. - Despite a 70% price increase over the past year, JD.com may still be trading below its true potential based on earnings, indicating it could be an attractive investment opportunity for long-term investors [10].

Core Perspective - Bill Ackman, CEO of Pershing Square Capital Management, made a significant loss by selling Netflix stock early, missing out on substantial potential gains [1][5][8] Investment Strategy - Ackman is an activist investor who takes a hands-on role in companies he invests in, such as encouraging management reform at Chipotle Mexican Grill and pushing for Wendy's to spin off Tim Hortons [2] Netflix Investment Details - Pershing Square spent approximately $1.1 billion to acquire over 3.1 million Netflix shares from January 21 to January 26, becoming a top 20 shareholder in the streaming business [3] - Netflix stock plummeted to $174 in April 2022, with the company posting a net loss of 200,000 subscribers for the first time since 2011 and announcing plans for an ad-supported tier and crackdown on password sharing [3] Early Exit and Losses - Ackman sold his entire Netflix stake on April 20, 2022, resulting in a $400 million loss [4][5] - Had Pershing Square held onto its stake, the original $1.1 billion investment would have grown to approximately $2.74 billion by January 23, 2025, representing a 149.12% increase from the initial average purchase price of $383.69 to $955.85 [6][8] - Ackman missed out on roughly $1.64 billion in potential profits by selling early [8]

Group 1 - Disney stock experienced a significant recovery in the latter half of 2024, rising from a low of $85.60 to $111.35, resulting in a 24.5% gain, which underperformed the S&P 500's 25% return [1] - The primary catalyst for this rebound was Disney's Q4 and full-year 2024 earnings report, which exceeded market expectations for both earnings and revenue [2] - As of January 23, 2025, Disney stock price decreased to $108.86, reflecting a 2.26% decline since the start of the year [2] Group 2 - Wall Street analysts are becoming increasingly optimistic about Disney, with Citigroup's Jason Bazinet setting a price target of $125, indicating a 15% upside [3][4] - Citi anticipates an 8% growth in EPS for 2025, followed by 11% and 13% growth in 2026 and 2027, respectively, based on strategic mergers and product launches [5] - Citi's EPS estimates for 2025 and 2026 are below market expectations, with a bear case scenario suggesting a downside to $96, while a bull case could see the stock rise to $134 [6][7] Group 3 - Bazinet resumed coverage on Disney with a conservative price target of $125 and a 'Buy' rating, advising investors to monitor the upcoming earnings call on February 5 [8]

Growth Stocks Overview - Growth stocks are known for delivering above-average revenue and earnings, making them popular among investors, including billionaires [1] - These stocks are favored due to their future growth prospects [1] Amazon (NASDAQ: AMZN) - Amazon is a strong investment choice due to its dominant position in e-commerce and consistent expansion, including initiatives like same-day delivery and pharmacy services [3] - The company is also a key player in AI and cloud computing through AWS [3] - Billionaire investors like Philippe Laffont's Coatue Management hold significant stakes in Amazon, with 11.27 million shares as of September 30, 2024, accounting for nearly 8% of the fund's portfolio [4] - Warren Buffett of Berkshire Hathaway also holds a stake in Amazon, reflecting on his earlier missed opportunity to invest in the company [4] - As of reporting, Amazon's stock price was $234.36, up almost 2% in the last 24 hours and over 6% in 2025 [5] Microsoft Corporation (NASDAQ: MSFT) - Microsoft is favored by billionaire investors due to its advancements in AI and cloud computing [7] - Stanley Druckenmiller, a renowned hedge fund manager, has highlighted Microsoft's potential in AI, comparing it to past technological breakthroughs like the rise of the internet [7] - Wall Street analysts, including Wedbush's Daniel Ives, have reiterated an 'Outperform' rating for Microsoft with a $550 price target, citing the company's AI initiatives [8] - Tiger Global Management, led by Chase Coleman, holds 5.34 million shares of Microsoft worth $2.3 billion as of September 30, 2024, making up 9.81% of its portfolio [8] - Microsoft's stock price was $441.42 at press time, up over 3% in the last 24 hours and 5% year-to-date [9] Investment Opportunities - Amazon and Microsoft offer strong investment opportunities based on their fundamentals and growth potential [11] - The fact that top investors favor these stocks is a significant vote of confidence, making them worth considering for a diversified portfolio [11]