AI Stocks Could Rebound as CoreWeave Earnings Ease Fears Over Data Center Funding

I am keenly aware that crude oil prices have softened due to seasonal pressures, but I expect that crude oil prices will firm up in February as seasonal demand picks up in the Spring. As a result, I continue to hold refiners (DINO, MPC, PBF and PSX), integrated energy companies (BP, CNQ, CVE, SHEL and SU), and tanker companies (DHT, ECO, INSW and TEN) that are expected to continue to prosper from tight global supplies.

The Energy Information Administration (EIA) increased its projected retail price of gasoline in 2027 to an average of $3.73 a gallon, up from $3.56 a gallon in October. The EIA cited expectations for persistent tightness in global fuel supplies. Due to tight supplies, the EIA also hiked its expected price of diesel next year to $5.03 a gallon, up from $4.49 a gallon.

It is unfortunate that investors are manic and have punished AI-related stocks, so I am expecting a spectacular recovery in the upcoming weeks.

 CoreWeave (CRWV) caused a lot of investor anxiety that the financing behind the AI boom may fizzle. However, after the market close on Tuesday, CoreWeave posted a 168% revenue increase and a 75% operating earnings increase that was significantly better than analyst consensus expectations. Despite the company’s operating margins declining from 16% to 10%, the stock surged in the wake of its better-than-expected results.

Although I do not recommend CoreWeave, its better-than-expected results are lifting other Neocloud companies and helping boost many AI-related stocks. We also have Nvidia’s third-quarter results and excitement associated with the Anthropic IPO to further boost the battered AI sector. 

Speaking of NVDA, I recommend that everyone hold Nvidia through its latest earnings announcement. I have no intention to sell Nvidia, since there are no better stocks to invest in. In my opinion, Nvidia is a great near-term buy.

 I should also add that I never sold Super Micro Computer (SMCI) when it went through its rough patch, since the analyst community never cut its earnings estimates. SMCI now trades at 4.1 times forecasted earnings, while NVDA trades at 11.1 times forecasted earnings. Clearly, these are bargain-basement valuations that I will never see again in my lifetime.

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Louis Navellier and his family own Nvidia (NVDA), Super Micro Computer (SMCI), DHT Holdings Inc. (DHT), Okeanis Eco Tankers (ECO), International Seaways Inc (INSW), Tsakos Energy Navigation Ltd (TEN), HF Sinclair Corp (DINO), Marathon Petroleum (MPC), PBF Energy Inc (PBF), Phillips 66 (PSX), BP Plc (BP), Canadian Natural Resources (CNQ), Cenovus Energy Inc (CVE), Shell Plc (SHEL), and Suncor Energy Inc (SU). They do not own CoreWeave (CRWV).