Digesting DeepSeek news and what to do with electrical stocks here By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2025
0mins
Should l Buy MSFT?
Source: Investing.com
Market Reaction to AI Infrastructure Concerns: The announcement regarding DeepSeek has led to a 15% drop in electrical stocks, with Bernstein analysts noting a potential long-term demand risk that could reduce earnings per share growth. Despite this, they maintain a positive outlook on the AI-driven capital expenditure cycle, projecting significant increases in hyperscaler investments through 2025.
Long-Term Growth and Investment Outlook: Bernstein highlights a robust long-term project pipeline for data centers, estimating $330 billion in the US and $770 billion globally, while near-term investments are expected to rise by 24%. They continue to favor electrical infrastructure stocks like Quanta Services and Schneider Electric, suggesting these will benefit from sustained demand despite recent market volatility.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.860
Low
500.00
Averages
631.36
High
678.00
Current: 401.860
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Custom Chip Benefits: The new hardware will feature a custom chip from AMD, delivering a significant leap in ray tracing performance while integrating intelligence directly into the graphics and compute pipeline, resulting in major gains in efficiency, scale, and visual ambition, enhancing player immersion.
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- Nvidia's Market Leadership: Nvidia plays a critical role in global AI infrastructure, reporting fourth-quarter revenue of $68.17 billion and net income of $42.96 billion for fiscal 2024, reflecting strong market demand and future growth potential.
- TSMC's Technological Edge: TSMC derived 58% of its revenue from high-performance computing in fiscal 2025, with AI accelerator revenue expected to grow at a mid-to-high 50% CAGR from 2024 to 2029, further solidifying its market position.
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See More
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- Nvidia's Market Position: Nvidia plays a crucial role in global AI infrastructure, reporting Q4 2023 revenue of $68.17 billion and net income of $42.96 billion, with future benefits expected from cloud providers' capital expenditures nearing $700 billion.
- TSMC's Technological Edge: TSMC anticipates AI accelerator revenue to grow at a mid-to-high 50% CAGR from 2024 to 2029, with high-performance computing accounting for 58% of its total revenue in fiscal 2025, indicating strong market demand and technological leadership.
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See More
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See More
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- Google Cloud Growth: Google Cloud achieved a remarkable 48% year-over-year growth in Q4, with an impressive operating margin of 30%, which not only brings substantial revenue to Alphabet but also suggests that as AI capabilities continue to come online, Google Cloud's growth potential will remain strong in the coming years.
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See More
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