My top 10 things to watch Tuseday, Jan. 28 1. In Jensen we fail? Really? Jensen Huang’s Nvidia bounced Tuesday after losing $600 billion in market cap in one day. The sell-off was prompted by concerns about Chinese AI startup DeepSeek getting more computing power out of throttled-back Nvidia chips. 2. Nvidia told CNBC , “DeepSeek is an excellent AI advancement and a perfect example of Test Time Scaling … leveraging widely available models and compute that is fully export control compliant.” U.S. export controls prohibit Nvidia from selling its most powerful chips in China. 3. Morgan Stanley cut its price targets on Club name Nvidia and host of other semiconductor stocks, including Club holding Broadcom . You knew that would happen. Everyone has to do this before there can be a bottom. The analysts, however, said they remain positive on AI chip stocks. 4. JPMorgan, in a similar short-term pain but perhaps long-term gain, said that efficiency gains highlighted by DeepSeek could lead to a “faster unlock” of high-performance semiconductor demand. The analysts said it could help custom chipmakers like Broadcom. 5. Melius Research downgraded Advanced Micro Devices to hold and cut their price target to $129 per share from $160. It was kind of a catch-up call as AMD shares closed at $115 on Monday. The analysts said the moves were not based on DeepSeek but worries about how AMD can compete with Nvidia. 6. President Donald Trump said DeepSeek “should be a wake up call” to U.S. tech companies.” He added, “We need to be laser focused on competing.” Separately, Trump said Microsoft , also a Club name, is among the companies interesting in buying TikTok from China’s ByteDance. 7. Wall Street was looking at a mixed open Tuesday, one day after the DeepSeek-fueled tech rout crushed the Nasdaq by 3% for its worst session of the year. The S & P 500 fell 1.5% on Monday. The less tech-focused Dow actually gained ground as investors rotated into other sectors. 8. Ahead of Tuesday’s after-the-bell earnings from Starbucks , Bank of America raised its price targets on the stock Monday. The analysts expect same-store sales to improve. Another Club name, solar company Nextracker , is also set to report earnings after the market closes. 9. Citi cut its price target on Club stock Eli Lilly to $1,190 per share from $1,250. The analyst see strong demand but fear policy changes. They kept Lilly as a buy but acknowledged that the 2025 landscape for drug stocks “looks tricky.” 10. Citi went the other way on Club name Bristol-Myers Squibb , raising its price target to $65 per share from $60. The analyst kept their neutral rating. Bristol-Myers is not as affected by politics. The company’s schizophrenia franchise is best in show. 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.
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during a news conference in Taipei, Taiwan, on Tuesday, June 4, 2024. Nvidia is still working on the certification process for Samsung Electronics Co.’s high-bandwidth memory chips, a final required step before the Korean company can begin supplying a component essential to training AI platforms.
Annabelle Chih | Bloomberg | Getty Images
My top 10 things to watch Tuseday, Jan. 28
1. In Jensen we fail? Really? Jensen Huang’s Nvidia bounced Tuesday after losing $600 billion in market cap in one day. The sell-off was prompted by concerns about Chinese AI startup DeepSeek getting more computing power out of throttled-back Nvidia chips.
2.Nvidia told CNBC, “DeepSeek is an excellent AI advancement and a perfect example of Test Time Scaling … leveraging widely available models and compute that is fully export control compliant.” U.S. export controls prohibit Nvidia from selling its most powerful chips in China.
3. Morgan Stanley cut its price targets on Club name Nvidia and host of other semiconductor stocks, including Club holding Broadcom. You knew that would happen. Everyone has to do this before there can be a bottom. The analysts, however, said they remain positive on AI chip stocks.
