Happy Sunday to everyone on The Street.

In case you somehow missed it, Nvidia delivered an earnings report this week that blew investors away and shattered Wall Street estimates:

• Nvidia’s profits jumped 628%, and revenue surged 268% when compared to the same period last year

• Earnings per share came in at $6.12, blowing past the $5.60 estimate

• The company’s AI data center division generated $22.6 billion, compared to $1.1 billion for that business segment in 2020.

To add some finishing touches to a landmark earnings report, Nvidia also announced a 10-for-1 stock split that would trim its share price from ~$1,000 to $100.

For those who invested in Nvidia at its IPO, they’ve seen monumental gains the likes of which we may never see again. Nvidia shares have surged over 250,000% since its IPO, meaning that if you invested $100,000 in 1999, your shares would be worth $250 million!

Plus, today’s partner looks at why TSLA could be your ultimate trade choice. One click subscribe here to learn more…

ICYMI: Here’s what drove the markets last week and what to keep an eye out for in the coming week. Read our market review and preview.

TOGETHER WITH TRADINGPUB

Why TSLA Could Be Your Ultimate Trade Choice

If you could only trade ONE ticker for the rest of your life… What would it be? MSFT? AAPL? AMZN?

For me, it’s hard to say… But for top trader -Lance Ippolito- he’s ALL IN on TSLA… 

That’s because it’s given folks like us a shot to target money-doubling returns every six days.

I don’t know any other stocks that have the potential to do that.

But thanks to a new market anomaly studied by Princeton, Vanderbilt and even the SEC… We can now target gains around 100% or more — from Tesla — on a weekly basis...

In fact his research shows it’s happened 23 times over the last year…

He believes this new Tesla-specific trade is so profound, he’s even made a video for you on how it works. 

So, if you have 30 minutes, one-click subscribe with this link and watch this video now.

Disclaimer: By clicking the links above you agree to periodic updates from The TradingPub and its partners (privacy policy) The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. The trades expressed are from historical data in order to demonstrate the potential of the system.

A Cash Buffet

Storing Up Cash

Warren Buffett has no problem sitting on some cash with rates at their current levels.

His Berkshire Hathaway (BRK) has been selling stocks more than buying them over the last six quarters.

Over that same period, Buffett has been gobbling up Treasury bills. 

Short-term Treasury bills are yielding more than 5%, a dramatic difference from the 0% they were yielding a few years ago.

Balking at High Price Tags

Another reason Buffett says he’s fine with having excess cash is stock valuations.

He argues that it’s currently challenging to find attractive options for spending his cash. He told investors a few weeks ago that Berkshire’s cash pile could swell to $200 billion in June.

Buffett also cited “what’s going on in the world” as a reason to pause aggressive equity buying.

Trimming the Fat

In the last quarter, the Oracle of Omaha trimmed his Apple (AAPL) stake by 13%. He cited tax reasons as the main motive behind the move. The iPhone maker is still Berkshire’s largest position by far.

Berkshire also reduced exposure to Louisiana-Pacific (LPX) and dropped all shares of Paramount (PARA) in this last quarter. 

Despite stock sales and a growing cash pile, Buffett doesn’t want investors to think he’s simply sitting on his hands.

He emphasized that Berkshire is more than willing to spend if the right opportunity presents itself.

Buyout Could Mean Big Bucks

Ripe for the Picking

Atlantic Investment’s chief investment officer Alexander Roepers is known for his merger and acquisition picks, and he has his sights set on Weatherford International (WFRD). 

Weatherford is an oilfield service company that’s struggled over the past few years. Now under new management, it restructured its balance sheet and looks back on track.  

Roepers is predicting it could soon be acquired, which could result in a massive surge in the stock’s price. The analyst believes it could rise to 60% over the next year and a half.

The Stats

Roepers has a proven track record for selecting potential winners, especially in the M&A space. Two years ago he highlighted Rheinmetall (RNMBY), Univar Solutions, and West Rock as potential investments. Univar Solutions and West Rock were both acquired, and Rheinmetall is up 188% since then.  

Roapers’ firm, Atlantic Investment, turned a nice profit investing in British company DS Smith (SMDS-GB). The firm bought DS Smith when it was trading at 280 pence per share, and exited the position at 400 pence per share when International Paper (IP) began bidding on the company. 

The Strategy

According to Roepers, Weatherford’s adjusted profit margin is similar to industry-leading Schlumberger’s (SLB). However, its stock is trading at a substantial discount to SLB, making it a strong target for takeover. 

The analyst says his strategy involves buying early and selling early. He doesn’t believe in “buy and hold” investing.   

Weatherford stock is up around 30% year-to-date and about 100% over the past 12 months. If Roepers is correct, it could climb much higher. This stock might be just the right opportunity for investors looking into a possible M&A situation.

The Far-Reaching AI Boom

Increased Demand

As AI continues to impact more industries, demand for power producers, grid operators, and data centers also increases. 

According to Morgan Stanley (MS), The US and Asia’s data center capacity could grow 20% per year through 2027. Over the same period, Asia’s data center power demand is expected to double, which could require some $100 billion in spending. 

This surge in power demand could have massive effects on supply chains and relevant companies. Morgan Stanley has highlighted a few stocks that could benefit.

Tenaga Nasional

The first is Tenaga Nasional (TNABY), a Malaysian electricity company. Morgan Stanley expects it to benefit more from Asian data center growth than any other stock it covers. 

The firm is bullish due to Tenaga’s massive pipeline for companies such as Microsoft (MSFT) and Amazon Web Services (AMZN). It also boasts an efficient grid connection process. 

Morgan Stanley analysts have given it a price target of 17.20 MYR ($3.67), a 35% increase from Tuesday’s close. 

Sembcorp Industries

The investment bank also pointed out Singaporean energy company Sembcorp Industries (SCRPF) as a stock to watch. The company’s solar energy portfolio is the largest in the region, according to the bank. 

Consequently, Morgan Stanley analysts believe it holds a position of power when negotiating contracts for renewable power purchase agreements. These types of agreements are expected to increase in volume as the industry attempts to go green. 

The firm has set a price target of 7.20 SGD ($5.35), a 38% increase from Tuesday’s close. 

For investors interested in getting exposure to AI at a global level, these stocks could provide a unique opportunity.

TOGETHER WITH TRADINGPUB

Why TSLA Could Be Your Ultimate Trade Choice

If you could only trade ONE ticker for the rest of your life… What would it be? MSFT? AAPL? AMZN?

For me, it’s hard to say… But for top trader -Lance Ippolito- he’s ALL IN on TSLA… 

That’s because it’s given folks like us a shot to target money-doubling returns every six days.

I don’t know any other stocks that have the potential to do that.

But thanks to a new market anomaly studied by Princeton, Vanderbilt and even the SEC… We can now target gains around 100% or more — from Tesla — on a weekly basis...

In fact his research shows it’s happened 23 times over the last year…

He believes this new Tesla-specific trade is so profound, he’s even made a video for you on how it works. 

So, if you have 30 minutes, one-click subscribe with this link and watch this video now.

Disclaimer: By clicking the links above you agree to periodic updates from The TradingPub and its partners (privacy policy) The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. The trades expressed are from historical data in order to demonstrate the potential of the system.

Last Sunday’s Poll Results

Are Meme Stock Rallies Done for 2024?

🟨🟨🟨🟨⬜️⬜️ Yes ✅ 

🟩🟩🟩🟩🟩🟩 No ❌ 

Which REIT do you think has the most upside?

🟨🟨🟨🟨⬜️⬜️ Boston Properties (BXP)

🟩🟩🟩🟩🟩🟩 Host Hotels & Resorts (HST)

Which stock do you think will outperform over the next 12 months?

🟩🟩🟩🟩🟩🟩 TSMC (TSM)

🟨🟨🟨🟨⬜️⬜️ MediaTek (TPE: 2454)

Will the MSCI China Index outperform the S&P 500 over the next 12 months?

🟩🟩🟩🟩🟩🟩 Yes

🟨🟨🟨🟨⬜️⬜️ No