Since 2022 when Open AI released its GPT 3.o model AI stocks like
NVDA and the data center solutions providers within the power and electricity space like
PWR and
ETN had a great run.
But recent events related to Deepseek have exposed weakness in the AI trade. When the market is fixated on
NVDA and
AVGO as the generational AI trade, the power and industrial names have been consolidating at their 200 Day SMA. These power stocks within the industrial sector are looking for catalysts to break out of the consolidating pattern. Let’s watch out for
NVDA earnings on Feb 26. And the SPDR Sub Sector Industrial ETF
XLI has also stalled. But we should always remember for this bull market to playout in full swing we need industrials need to outperform the index.
For now
PWR is in accumulation pattern.
But recent events related to Deepseek have exposed weakness in the AI trade. When the market is fixated on
For now
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