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We're Using DeepSeek Chaos to Initiate a New Position, Add to Three Others

DeepSeek’s model was a known entity well ahead of last week’s big AI announcements. It is increasingly evident the market is overreacting.

Chris Versace·Jan 27, 2025, 2:25 PM EST

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SymbolTransaction Type# Shares TradedRecent Price $Shares Owned After Trade% Portfolio

ETN

Buy

100

310.25

535

3.25

MRVL

Buy

115

102

1,867

3.75

NVDA

Buy

145

119

1,535

3.60

NLR

Buy

478

85

478

0.80

After you receive this Alert we will be making the following trades:

-- Buy 100 shares of Eaton Corp. ETN at or near $310.25. Following the trade, ETN shares will account for roughly 3.25% of the portfolio’s assets.

-- Buy 115 shares of Marvell Technology MRVL at or near $102. Following the trade, shares of MRVL will make up about 3.75% of the portfolio’s assets.

-- Buy 145 shares of Nvidia NVDA at or near $119. Following the trade, NVDA shares will be around 3.6% of the portfolio’s assets.

-- Buy 478 shares of the VanEck Uranium and Nuclear Energy ETF NLR at or near $85. This is a new position for the portfolio and will account for 0.8% of its assets.

After doing some more work on DeepSeek and its AI model, we are not going to wait for comments from Microsoft MSFT and Meta META later this week to pick up additional Nvidia, Marvell, and Eaton shares. 

We’re also going to "graduate" the VanEck Uranium and Nuclear Energy ETF from the Bullpen to the portfolio with a small position and a $98 price target. While there is enough upside to warrant a One rating, as we discussed in today’s video, we could see a few more bumps in the coming day and that is leading us to take a cautious approach. With that in mind, we’ll watch the support level near $82.75 for NLR closely to pick up more shares, but for now, we’re starting the position with a Two rating.

What’s Changed From This Morning and Why Make These Moves?

We like to take advantage of opportunities when they present themselves, and as we continue to read and have conversations about DeepSeek it is increasingly evident the market is overreacting. Part of this stems from DeepSeek previewing its AI model in November of last year, which means it was already a known entity in AI circles last week when Stargate AI was announced, and Meta telegraphed its sizable capital spending increase for this year. That, along with concerns over data privacy, security and other factors tied to DeepSeek suggests the market is overreacting to today’s headlines.

We’ve capitalized on similar short-term opportunities in the last six months by focusing on the medium to longer-term, and that’s what we’re doing again today. We will be paying close attention to capital spending comments from Big Tech companies in the coming days, as well as AI adoption comments this week from ServiceNow NOW, SAP SE SAP and other companies.

As we make these trades, we will make the following panic points adjustments: 

Eaton: Reset at $275 from $290.

Marvell: Reset at $85 from $95.

VanEck Uranium and Nuclear Energy ETF: Set at $73.

Nvidia: Reset at $101 from $112.

As these shares recover, we will raise these new panic points accordingly. 

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)

More Pro Portfolio:

At the time of publication, TheStreet Pro Portfolio was long NVDA, ETN, MRVL, MSFT, META and NOW.