Microsoft CEO Satya Nadella hints at potential concerns for Nvidia, bullish prospects for certain commodities
From Nasdaq: 2025-01-01 09:30:00
The AI revolution continues to be a key focus for investors due to its transformative potential, with rapidly changing winners and losers in the market. Microsoft CEO Satya Nadella hinted at potential concerns for Nvidia, the big winner in 2023 and 2024, but also suggested bullish prospects for certain commodities with high dividends.
Nadella’s recent statements about Microsoft no longer being chip constrained, but rather power constrained, cast a shadow over Nvidia’s stock. Microsoft, Nvidia’s largest customer, had been supply constrained, affecting Azure cloud growth. This change could signal slowing AI demand, improving chip supply, or a mix of both.
Rumors of potential AI improvements slowing down have surfaced, affecting AI chip purchases. Microsoft’s in-house-designed Maia accelerators may be ramping up production in 2025, reducing its dependency on Nvidia GPUs. Nadella’s remarks on being power constrained could indicate a Maia ramp, rather than a downturn in AI chip demand.
As demand for electricity rises, particularly from AI data centers, natural gas stocks could outperform Nvidia in 2025. With nuclear stocks facing challenges in rapid deployment, hedge fund manager David Tepper and Morgan Stanley analyst Stephen Byrd predict a shift towards natural gas to meet the power needs of AI data centers. Natural gas facilities are being built alongside AI data centers, connecting directly to bypass the grid. EQT Corporation (NYSE: EQT) is a key player in the natural gas sector, with the largest acreage in the Marcellus and Utica shale formations. The Equitrans acquisition has lowered EQT’s break-even costs, making it a strong investment. With the ability to break even at low prices, EQT could see substantial gains if natural gas prices surge. The Motley Fool Stock Advisor team has identified EQT as a potential investment opportunity, highlighting its growth potential. Consider the success of Nvidia, another AI stock, and the returns it has generated for investors. Stock Advisor provides a blueprint for success, with regular updates and stock picks to help investors achieve strong returns. Billy Duberstein and his clients have positions in Microsoft, EQT, and Nvidia, with the Motley Fool recommending these stocks. Consider the potential for growth in the natural gas sector and the opportunities it presents for investors looking to capitalize on the market. 1. The U.S. economy added 943,000 jobs in July, exceeding expectations and marking a strong rebound from the previous month. Unemployment rate fell to 5.4%, down from 5.9% in June, with notable job gains in leisure and hospitality, professional and business services, and transportation.
2. The Tokyo Olympics have seen a total of 23 new COVID-19 cases among athletes, officials, and media personnel. Despite strict safety protocols, concerns remain about the potential for further spread of the virus during the games. Organizers are closely monitoring the situation and implementing necessary precautions.
3. A new study reveals that the Pfizer-BioNTech COVID-19 vaccine is only 42% effective against the Delta variant after one dose. However, two doses provide 88% protection against symptomatic infection. Health experts emphasize the importance of completing the full vaccination regimen to maximize immunity against evolving variants.
4. The wildfires in California have burned over 500,000 acres of land, prompting evacuations in multiple regions. The Dixie Fire, the largest blaze, has destroyed homes and forced residents to flee. Firefighters are working tirelessly to contain the flames, as extreme heat and dry conditions continue to fuel the infernos.
Read more at Nasdaq: Microsoft CEO Satya Nadella Just Said Something That Could Be Terrible News for Nvidia but Great News for This Commodity Stock in 2025