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Copper is used in data centers for power cables, electrical connectors, power strips and more, Jefferies noted in an April 10 note. It estimates that global copper demand by data centers will increase from 239 kt (thousand tons) in 2023 to at least 450 kt per annum in 2030. "Hopes for GenAI / data centre copper demand growth are adding to investor bullishness on copper, against a backdrop of constrained supply," it wrote. For those looking to buy into the sector, CNBC Pro screened for stocks in the Global X Copper Miners ETF. In addition to the Global X Copper Miners ETF, those who want to invest in this sector via exchange-traded funds can consider the Sprott Copper Miners ETF and the iShares Copper and Metals Mining ETF.
Persons: Jefferies, Morgan Stanley, It's Organizations: CNBC Pro, Copper Miners, Solaris Resources, Filo Mining, Miners, Metals Mining
Many shares look expensive in today's market, but there are still cheap stocks to be found — some of which can be held for the next 10 years, according to the pros. They shared with CNBC Pro their tips for picking cheap stocks that hold long-term promise, as well as their top picks. How to pick cheap stocks Morningstar's Susan Dziubinski says she believes in owning stocks that offer "some sense of certainty" in terms of cash flow and company fundamentals. Freddie Lait, chief investment officer at Latitude Investment Management, says a willingness to invest in some cyclical stocks is key. Cheap stocks to hold for the long term Morningstar's Dziubinski named three cheap stocks that investors can hold for the next decade: U.S. consumer health firm Kenvue , regional U.S. bank U.S. Bancorp , and medical equipment firm Zimmer Biomet .
Persons: Susan Dziubinski, isn't, Freddie Lait, Lait, he's, Dziubinski, Zimmer Biomet, Morningstar, Bancorp Morningstar, AutoZone Organizations: CNBC, Latitude Investment Management, U.S . Bancorp, Companies, Bancorp Locations: U.S, AutoZone
Overall, however, markets — including global stocks — are still very much deep in positive territory. The S & P 500 is up around 9.6% year-to-date, and in fact hit new record highs in March . Global stocks outside of the U.S. have also had a nice run, with the FTSE All World Ex US index rising nearly 8% year-to-date. Stocks with a 14-day RSI higher than 70 are likely overbought and may be due for a pullback. These are among the top overbought names in the S & P 500, according to FactSet.
Organizations: Dow Jones, Global, FTSE, U.S, Commonwealth Financial Network, CNBC Pro, Vanguard FTSE Locations: Ukraine
Data centers house vast amounts of computing power needed for AI workloads, and that need is set to grow as many tech companies are rapidly developing infrastructure for artificial intelligence. The bank named three stocks to play the trend: U.S.-listed power management firm Eaton , French energy tech firm Schneider Electric and U.S. power tech firm Cummins . It says Eaton is the key U.S. play on data centers, with 14% exposure and "broad favourable trends" in electrification, while Cummins has "favourable backup power exposure" to data centers. UBS gave Eaton a price target of $330, representing marginal downside. It gave the stock a price target of 250 euros ($270), or around 20% potential upside.
Persons: Eaton, Cummins, Schneider, — CNBC's Michael Bloom Organizations: UBS, Capital Goods, Schneider Electric
In Europe — much like in the U.S. — a few key stocks have been driving the market, especially earlier this year, according to Morgan Stanley. In late February, just five stocks were responsible for 60% of European stock market gains year-to-date, the bank said. The company has grown into one of the largest, most integrated payment providers, Morgan Stanley said. Exclusive Networks Morgan Stanley says this is one of the largest and fastest-growing specialist distributors of cybersecurity products globally. The nature of threats is constantly changing, and so the products offered by the vendors – and the vendors themselves – are constantly changing," Morgan Stanley said.
Persons: Morgan Stanley, CompuGroup Morgan Stanley, Networks Morgan Stanley, — CNBC's Michael Bloom Organizations: Solutions, Networks Locations: Europe, U.S, , Germany, France, Austria
AI is very power-intensive — and its power needs are only set to rise in the coming years. Morgan Stanley Investment Management's Aaron Dunn says the "next big bottleneck" for the hyperscalers — which are doing a lot of the cloud computing for AI applications — is either power or fiber. And that's why Dunn is "pretty bullish" on utilities, naming one stock to play it: CMS Energy . "And so these utilities … have a very favorable opportunity to draw solid earnings growth and good returns for them," Dunn concluded. Their power consumption is set to grow at a compound annual growth rate of 11% through 2030, the bank said.
Persons: Morgan Stanley, Morgan Stanley Investment Management's Aaron Dunn, CNBC's, Dunn, Eaton Vance, BofA, — CNBC's Pia Singh Organizations: Morgan, Morgan Stanley Investment, Morgan Stanley U.S . Value, CMS Energy, CNBC, Emerson, Nvidia Locations: United States
Last week, Goldman Sachs told clients they should start hedging for a market decline . Here's how Goldman suggests investors worried about a declining market can hedge their positions. Others also believe that it's time to start hedging — or at least take a more conservative stance. 'Shift into more value names' Top hedge fund manager David Neuhauser says it would depend on where investors are positioned right now. But he isn't a fan of hedging strategies like options, saying "over time you just end up with lower returns."
Persons: Goldman Sachs, Goldman, David Neuhauser, that's, Russell, Neuhauser, Brian Arcese, he's, Arcese, It's, Freddie Lait, Lait Organizations: Dow Jones Industrial, Nasdaq, CNBC Pro, Livermore Partners, London, Nvidia, Foord Asset Management, CNBC, Latitude Investment Locations: Europe, U.S
But many smaller firms along the global AI supply chain also stand to benefit. It has worked with Google for over a decade, thanks to its ability to produce highly customized server design, BofA noted. With rising AI server applications and GPU supply, it expects the AI server GPU baseboard business to account for 3% to 6% of Wistron's total sales in 2024 and 2025. Hardware tech Hardware tech such as printed circuit boards are the upstream parts of the AI server supply chain. In addition, its partnership with Nvidia in automotive AI should widen its AI opportunities, BofA noted.
Persons: BofA, there's, Microsoft's OpenAI, Unimicron, — CNBC's Michael Bloom Organizations: Big U.S, Nvidia, Microsoft, Global, Google, Semiconductors Locations: Big, Taiwan, Greater China, Asia
If you had a spare $1 million to invest right now, what should you buy? He would allocate roughly 60% into stocks this way: 15% each to U.S. large-cap growth stocks and U.S. large-cap value stocks; 4% to small-caps; and 8% to mid-caps. "We really believe in style diversification and feel that remaining diversified with value and growth stocks remains prudent," Benson said. With a million dollars to invest, it would be "reasonable" for investors to put their money in both small- and mid-cap stocks now, he said. The average amount of money that his clients invest is $1.3 million, and his firm manages over $1.2 billion.
Persons: Aaron Benson, Baird, Benson, Chris Fasciano, Shams Afzal, Afzal, Louis Navellier, they've, Navellier, Li Auto Organizations: U.S . Federal, CNBC Pro, Commonwealth Financial Network, Carnegie Investment, Navellier, Associates, Nvidia, Computer, Micro, Mexico's Vista Energy, Volkswagen, Alamos Locations: U.S, Mexico, India, China
Markets are still red-hot even after a very good 2023, when the S & P 500 soared around 24%. The S & P 500 is up around 10% year-to-date, and in fact hit new record highs in March . Using FactSet, CNBC Pro screened the S & P 500 and the Vanguard FTSE All-World ex-US ETF for stocks that are beating the market so far this year — and that analysts love. We used these criteria: Up more than 10% so far in 2023 — beating the S & P 500. Just five stocks turned up from the S & P 500 screen: Amazon , Delta Airlines , Marathon Oil Corporation , Micron Technology and United Airlines .
Persons: , Meituan Organizations: FTSE, CNBC Pro, Vanguard FTSE, Delta Airlines, Marathon Oil Corporation, Micron Technology, United Airlines . United Airlines, Analysts, Micron
Analysts are expecting gold prices to have even more upside from here . There is a common belief that gold prices tend to rise when interest rates fall, with bonds becoming less attractive as they no longer deliver attractive yields. Stock picks Want to play the gold theme via gold miners? Even in this environment, not all gold stocks are equal – with some big miners underperforming despite the record gold price, according to Neuhauser. A third stock he named is Canada-listed Wesdome Gold Mines , which he says fits his overall criteria for gold miners.
Persons: David Neuhauser, Neuhauser, there's, Joe Biden's, Newmont, they'll Organizations: U.S . Federal Reserve, CNBC Pro, Fed, Livermore Partners, U.S, U.S ., Stock, Barrick Gold, Mining, Mines Locations: Ukraine, Gaza, U.S, Canada, OECD
One stock is a "promising AI investment" and set to be a "serious player" in a corner of the space, according to Brian Stutland of Equity Armor Investments. They are really starting to become very creative in the AI world," Stutland, a portfolio manager at the firm, told CNBC's "Street Signs Asia " last week. Palantir has been scaling its Artificial Intelligence Platform, or AIP, and Karp said the company carried out nearly 600 pilots with the technology last year. Shares of Palantir jumped nearly 10% on March 6 after Palantir announced its Tactical Intelligence Targeting Access Node was selected by the U.S. Army . TITAN uses artificial intelligence to provide targeting information for missiles.
Persons: Brian Stutland, That's Palantir, CNBC's, Alex Karp, Palantir, Karp, Stutland, Morningstar, Dan Ives, Ives, — CNBC's Ashley Capoot, Keris Lahiff Organizations: Equity, Investments, AIP, Intelligence, U.S . Army, Fund, Wedbush, Securities, Global TAM Locations: U.S
The "next big thing" in tech will come from sectors such as enabling tech — which includes artificial intelligence and cybersecurity — as well as healthtech, greentech and fintech, UBS said. Here are some names from UBS' list and what it says about each stock. "The medical surgical and neurological business has also returned to strong growth as the pandemic impact fades," the bank said. Broadcom : UBS says that Broadcom boasts a "market-leading" position in semiconductor design. Its greentech picks include French industrial gases and services company Air Liquide , French utility firm Engie , and German chemicals firm Wacker Chemie .
Persons: , Stryker, ASML, — CNBC's Michael Bloom Organizations: UBS, fintech, Baidu, ASML, Broadcom, 5G, Intercontinental Exchange, Mastercard, Air, Wacker Chemie Locations: Wacker
Semiconductor stocks got a lift from the rising tide of artificial intelligence. The divergence between semiconductor stocks that are doing well and those that aren't is becoming starker, UBS said. It's "increasingly hard to place all semiconductor stocks in one single bucket," UBS said in a March 5 note. "The performance divergence between semiconductor stocks has been strong [year-to-date] and warrants attention," it added. UBS said while one group of stocks has "significantly" outperformed — artificial intelligence-related semiconductor stocks and semiconductor capital equipment stocks (excluding China) — another group has "materially trailed" — analog and microcontroller semiconductor companies.
Persons: It's Organizations: PHLX Semiconductor, UBS Locations: China
Sell Nvidia or stick with it? Here's what investors say
  + stars: | 2024-03-13 | by ( Weizhen Tan | ) www.cnbc.com   time to read: +6 min
Here's what those who currently hold Nvidia shares are doing — or planning to do — with their positions. Sell at least some Some are saying it's time to sell or that they have already sold part of their Nvidia shares. Paul Gambles, managing partner of MBMG Family Office Group, told CNBC Pro on Monday that he'd sell Nvidia right now. Stick with it Louis Navellier of Navellier and Associates is still fairly bullish, and says it's definitely not time to sell any Nvidia shares yet. After Nvidia's selloff, he reiterated his position, saying he has no plans to sell Nvidia.
Persons: it's, Vahan Janjigian, CNBC's, Paul Gambles, Gambles, NVDA, Jordan Cvetanovski, Cvetanovski, I'm, we've, Craig Johnson, Piper Sandler, Louis Navellier, Nvidia's selloff Organizations: Nvidia, Greenwich Wealth Management, Trust, VanEck Semiconductor, Family, CNBC Pro, Sydney, Pella Funds Management, Navellier Locations: Pella, NVDA
Sell Nvidia or stick with it? Here's what experts say
  + stars: | 2024-03-13 | by ( Weizhen Tan | ) www.cnbc.com   time to read: +6 min
Here's what those who currently hold Nvidia shares are doing — or planning to do — with their positions. Sell at least some Some are saying it's time to sell or that they have already sold part of their Nvidia shares. Vahan Janjigian, chief investment officer at U.S.-based Greenwich Wealth Management, says he had a "big position" in Nvidia until recently. Paul Gambles, managing partner of MBMG Family Office Group, told CNBC Pro on Monday that he'd sell Nvidia right now. Stick with it Louis Navellier of Navellier and Associates is still fairly bullish, and says it's definitely not time to sell any Nvidia shares yet.
Persons: it's, Vahan Janjigian, CNBC's, Paul Gambles, Gambles, NVDA, Jordan Cvetanovski, Cvetanovski, I'm, we've, Craig Johnson, Piper Sandler, Louis Navellier Organizations: Nvidia, Greenwich Wealth Management, Trust, VanEck Semiconductor, Family, CNBC Pro, Sydney, Pella Funds Management, Navellier Locations: Pella
Super Micro , Tokyo Electron Device , Meta Platforms , Tata Motors and Mitsui are among the stocks that have seen the most significant gains over the past year. According to FactSet, their share price movement correlates between 93% and 98% of the time with Nvidia's stock. Super Micro Super Micro, which makes computer servers, has benefitted directly from using Nvidia's AI chips in its products. Tokyo Electron Device Tokyo Electron Device is a distributor of Nvidia's chips in Japan. Tokyo Electron Device is a listed subsidiary of Tokyo Electron , Japan's largest chip-manufacturing equipment maker.
Persons: FactSet, Meta, Mark Zuckerberg, Paul Meeks, Meeks, , Jonathan Vanian, Weizhen Tan Organizations: Nvidia, CNBC Pro, Nvidia's, Tata Motors, Mitsui, Microsoft, Meta, Facebook, Super, Tech, Portfolio Management Locations: Tokyo, Japan
Growth stocks have often been investor darlings — the S & P 500 is driven by stocks in sectors like tech. Value stocks are less popular. But many growth stocks are also becoming expensive, prompting some investors to turn to value stocks. Goldman Sachs also recently highlighted value stocks that stand out for their cheap valuations compared with earnings growth prospects. Those interested in value stocks can consider the following from CNBC Pro's screen of the Vanguard Value ETF.
Persons: darlings, Brian Szytel, Szytel, Goldman Sachs, Baker Hughes, Properties Organizations: Group, CNBC, Vanguard, AES Corporation, Halliburton Company, AES, Royalty Pharma
Many growth stocks are becoming expensive, prompting some investors to turn to value stocks. "The S&P 500 at 5,075 with expected earnings growth of 10% for 2024 gives us $243 a share and puts us at 21X earnings - its pricey, plain, and simple," said Brian Szytel, senior managing director of The Bahnsen Group, in late February. The S&P 500 closed around 5,078 on Tuesday. "I would however, own parts of the market shift to more value-oriented names and believe that rotation that started in 2022 from growth to value will resume. Those interested in value stocks can consider the following from CNBC Pro's screen of the Vanguard Value ETF.
Persons: Brian Szytel, Weizhen Tan Organizations: CNBC, Vanguard
Nvidia may have enjoyed a red-hot run on the back of the artificial intelligence craze, but many other tech stocks have also benefited. CNBC Pro speaks to fund managers to find out the best alternatives to Nvidia that investors can consider. ASML will also continue to benefit "because without ASML there's no TSMC, without TSMC there's no Nvidia," Cvetanovski said. Ray Wang, principal analyst and founder of Constellation Research, also named TSMC, saying that it "always wins." Super Micro Computer Meeks, who is co-chief investment officer at Harvest Portfolio Management, says Super Micro Computer is his favorite alternative AI stock to play right now.
Persons: Paul Meeks, Taiwan's TSMC, TSMC, Cvetanovski, ASML, Ray Wang, Vertiv, Meeks, astronomically, Wang, Meta —, Sam Altman's Organizations: Nvidia, Veteran, CNBC Pro, Tech, CNBC, Semiconductors, Sydney, Pella Funds Management, Generations Fund, Devices, Constellation Research, AMD, Portfolio Management, Microsoft, Big Tech, Cisco, Meta, Google Locations: Pella, United States
Top hedge fund manager David Neuhauser says the world is in a "boomer renaissance" and investors should be betting big on certain sectors that play the theme. "They are the one demographic which owns the most assets (homes, stocks, bonds, etc) with low fixed rate mortgages," Neuhauser said. He told CNBC Pro, "I think the world is in this boomer renaissance now and there are some stocks that are seeing great moves." He added that the stocks "are not mega tech which shows you other areas tied to the wealth [effect] are helping broadening out gains." Below are the stocks he named and the buy ratings and average upside given by analysts covering them, according to FactSet.
Persons: David Neuhauser, Neuhauser, CNBC's Organizations: Livermore Partners, Big Pharma, CNBC
Bitcoin prices have rebounded since 2023, recovering from steep declines in the couple of years before. On Tuesday, bitcoin prices reached a two-year high of over $56,000. Ark Invest's chief futurist, Brett Winton, believes that a "responsible allocation to innovation generally is really, really critical." On average, Ark Invest's research shows that the "optimal" allocation to maximize risk-adjusted returns — on a five-year time horizon — would be 4.8% on average since 2015. The breakdown of Ark Innovation ETF's tech investments is as follows: cryptocurrencies make up 6.9% of it, and digital wallets 8.8%, among other tech themes.
Persons: Ark, Brett Winton, CNBC's, Winton, , bitcoin's Organizations: Invest, Innovation, Ark Invest Locations: bitcoin, U.S, Europe
That's Super Micro Computer , a Nasdaq-listed company which makes AI systems and graphics processing unit servers. Navellier, who has held shares of Super Micro Computer for over two years, told CNBC's " Street Signs Asia " that "Super Micro is hotter than Nvidia. There are only two companies that dominate in that area, according to him: Nvidia and Super Micro Computer. Wall Street analysts have also recently been giving Super Micro Computer their votes of confidence. Super Micro Computer received a 71% buy rating from analysts covering the stock, according to FactSet data.
Persons: there's, Louis Navellier, That's, CNBC's, Navellier, Rosenblatt, , Samantha Subin, Hakyung Kim Organizations: Nvidia, Navellier, Associates, Nasdaq, Super, Computer, Micro, Wall Street, Bank of America
The bank increased its price target for Nvidia to $820 from $575 in a Feb. 22 note. TD Cowen said in a Feb. 21 note that the company is likely to maintain strong data center growth in the coming years. It raised its price target for Nvidia from $800 to $925. Luria only has a neutral rating for Nvidia, giving it a $410 price target — implying a 47% downside. Bottomline: According to FactSet, analysts covering Nvidia gave it a 93% buy rating, with an average price target of $850.97, implying upside of 8.4%.
Persons: Jeff Pu, CNBC's, TD Cowen, BofA, Gil Luria, D.A, Davidson, Luria, — CNBC's Michael Bloom Organizations: Nvidia, Citi, Haitong, Apple, NVIDIA, Microsoft, Google, AMD, Intel Locations: BofA
Investors have been bullish on Japan stocks since last year, repeatedly driving them to record highs. Goldman Sachs has named "Seven Samurai" stocks in Japan, which it says could be an equivalent of the United States' "Magnificent Seven." The "Magnificent Seven" comprises Apple , Amazon , Alphabet , Meta , Microsoft , Nvidia and Tesla , which were behind much of the gains that drove the S & P 500 up a whopping 24% or so in 2023. In a Feb. 18 report, Goldman answered clients' requests for the Japanese equivalent of the "Magnificent Seven." With that criteria, Goldman has come up with a list of seven stocks, and they are: Screen Holdings, Advantest, Disco, Tokyo Electron, Toyota Motor, Subaru and Mitsubishi.
Persons: Goldman Sachs, Goldman, they've, CNBC's Ying Shan Lee Organizations: Nikkei, Apple, Microsoft, Nvidia, Tesla, Screen Holdings, Tokyo Electron, Toyota Motor, Subaru, Mitsubishi, Tokyo Stock Exchange Locations: Japan, United States, Tokyo
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