Stock Talk
We first looked at Cerebras (CBRS) when the stock had already surged over $300 just days after its IPO. At those lofty levels, it felt prudent to wait rather than chase the early hoopla.
Now, after a pullback of roughly 50 points and signs of early investor profit taking, maybe the stock is entering a zone where one or two shares may be enough to get a feel for the trading flow.
One issue now being reported in the AI race is heat. Massive AI centers are drawing growing scrutiny for enormous power demand, cooling requirements and even localized heat impact in urban areas.
Reports are emerging that some locales near massive AI centers are seeing environmental temperatures rise several degrees from the enormous power and cooling demands. Not good.
As AI infrastructure scales, efficiency may eventually matter just as much as raw compute power.
That is one important reason why the CBRS approach — using far more processing on just one large wafer instead of spreading workloads and heat across thousands of separate chips — is capturing investor interest.
At the same time, companies like Navitas Semiconductor (NVTS), focused on advanced power semiconductors built around gallium nitride (GaN) and silicon carbide (SiC) technology, are being set up as part of the AI infrastructure story. More efficient power conversion means less wasted energy and potentially less heat throughout future AI center designs.
None of this changes the fact that NVIDIA still largely controls the current AI landscape. But some investors appear to be watching for alternative approaches as power, heat and scaling issues continue to grow.
Some watch stocks have had powerful runs, only to get hit hard later by insider moves, offerings, profit taking or short theses challenging the stories behind them. That does not mean the stories are broken. It does mean volatility remains part of this AI race.
We already covered the general notion of trimming some gains in previous posts. But if “the suits” believe the story has legs — and now see increasing U.S. government backing behind AI infrastructure and advanced technology — staying the course “in some” while staying aware makes some sense.
Not all stock stories fit the same mold. Some names, like VVX, may appeal more to investors looking for operational growth, earnings and what appear to be solid fundamentals tied to defense infrastructure and technology support.
Others, like ONCY, remain speculative biotech stories, though recent FDA alignment and treatments aimed at advanced cancers appear to be capturing increasing interest. AVAV at times has behaved almost like a momentum trader stock, where buying weakness and trimming strength may make more sense than chasing spikes.
The common thread may simply be awareness. The stories here do have merit, but volatility, timing and position sizing still matter.
As for CBRS, after the anticipated pullback, the story may now be worth watching more closely.
Stay watchful.
- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
ALL in my humble opinion, scroll down and read more. This site does NOT make Buy / Sell recommendations.
