We're Adding This Nuclear Play to the Bullpen Amid DeepSeek-Related Selloff
Market uncertainty can bring opportunity. Here's how we're approaching today's trading action.
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Following our comments in today’s video about the market mood and DeepSeek, shares of Nvidia NVDA, Marvell MRVL, Eaton ETN, and to a lesser extent Applied Materials AMAT are under pressure. We’ll stick to the plan we laid out in the video, looking for insight about DeepSeek and its AI model from Big Tech companies before we make any moves to snap up additional shares.
We are seeing Wall Street come out in support of Nvidia and other companies positioned to benefit from outsized AI spending, posing questions about DeepSeek as they do so. Bernstein is out with comments that DeepSeek is not a “doomsday” scenario for AI buildouts, especially as it views the oft-quoted $5 million figure attached to DeepSeek as being extremely misleading. Others are pointing out that DeepSeek has significantly more Nvidia chips than is being reported because it would violate U.S. export controls. Citi joins our thinking that companies are not inclined to move away from advanced AI chips, especially if it means using AI from a Chinese vendor given potential security issues.
While we have sizable positions in NVDA, AMAT, and MRVL, we have room to nibble should Microsoft MSFT and Meta META support our line of thinking. However, we recognize their comments could snap those shares back rather quickly and any additional buying could result in them flirting with our position-size restraints in short order. Because our position size in ETN is far smaller by comparison, we would be inclined to pick up more of those shares as expected clarity arrives.
A New Name to the Bullpen
Because market uncertainty can bring opportunity, we’re placing VanEck Uranium and Nuclear ETF NLR in the TheStreet Pro Portfolio Bullpen.
If you’ve been reading our weekend "signals" Alerts, then you know nuclear power is receiving much attention as a solution to the data center power demand problem. Much like the diversified exposure we get to cybersecurity via the First Trust Nasdaq Cybersecurity ETF CIBR, we get that with NLR.
Alongside comments from Big Tech about DeepSeek, we’ll also be watching technical support levels for NLR shares. As we add them to the Bullpen, we’ll remove Walmart WMT, which has had a great run, but so too have many portfolio holdings.
At the time of publication, TheStreet Pro Portfolio was long NVDA, MRVL, META, ETN, AMAT, MSFT and CIBR.
