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: 409.430
Low
500.00
Averages
631.36
High
678.00
Current: 409.430
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
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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See More
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- Core Holding Position: Although the exact stake size was not disclosed, Ackman referred to his investment in Microsoft as a 'core holding,' indicating a long-term bullish outlook, particularly regarding the company's competitiveness in AI and cloud computing.
- Market Reaction Analysis: Microsoft's shares have fallen over 26% since reaching a record high in July 2025, primarily due to market concerns about the returns on its AI investments; Ackman believes this excessive worry provides a favorable entry point for investors.
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