Data center trade is sent careening off the rails by DeepSeek

Man, things move fast. Just a few days ago we were saying how the AI data center trade was clearly emerging as perhaps the single biggest winner in the early going of 2025.

Yeah, so about that. It seems that the arrival of the China’s DeepSeek on the scene has altered the market’s view a bit. (Here’s a quick recap as to why.)

As a reminder, this is one of Goldman Sachs’ handy thematic buckets of stocks, with this one “exposed to AI and the increasing demand for data centers, across electrical industrials and infrastructure stocks, semis, data centers REITs, and tech hardware.”

Some of its top holdings include Broadcom and Arista Networks, as well as mainstays like Nvidia, Applied Materials, Jabil Circuit, and Vertiv Holdings, which are getting banged up pretty badly by the DeepSeekFreak.

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J. Edward Moreno

Hims rises on revenue beat, discloses it’s again in partnership talks with Novo

Hims also disclosed on Monday that it’s in talks with Novo Nordisk to make the drugmaker’s weight-loss drugs available on its platform. Last time, that didn’t go so well.

Palantir posts ninth straight earnings beat, boosts guidance

Here’s how the numbers look.

Matt Phillips2h

Tasha Matsumoto

Amazon and the AI trade sustain stock gains

Stocks kicked off what is historically their best month of the year on a positive note, with help from Amazon and AI.

PAMPLONA, NAVARRA, SPAIN - 2025/07/09: Morante de la Puebla, a bullfighter from Seville fights a bull from the Alvaro Nunez ranch in Pamplona's Plaza Monumental during the 2025 San FermÌn festival

Luke Kawa3h

Trump’s “impossible trinity” on AI and energy

Everyone loves a good trilemma.

In economics, the most famous of the genre was developed by Fleming and Mundell, which posits that you can only successfully achieve two of the following three objectives: the free flow of capital, a fixed exchange rate, and independent sovereign monetary policy.

George Pollack, senior US policy analyst at Signum Global Advisors, proposed a trilemma of his own to describe the Trump administration’s competing policy aims as a red-hot AI boom devours power and leaves households miffed by rising electricity bills.

He wrote:

“This note flags what we believe to be a simple reality whose salience will continue growing in US politics in coming months: the Trump administration, in its remaining three years will face a trilemma as the nation waits for its energy bet to play out — proving able to achieve two, but not all three, of the following objectives:

-Fulfill AI’s energy-appetite.
-Keep repressing renewable sources of energy.
-Appease American electricity consumers.”

As for evidence that the Trump administration is taking a fossil fuels-first approach while stunting renewables, Pollack pointed to the One Big Beautiful Bill Act, which shrinks access to tax credits for green energy, as well as the end to the federal pause on liquefied natural gas export permits. However, it would be “inaccurate and unfair” to blame President Trump’s policies for surging electricity prices in recent months, he added.

While the government has pursued the expansion of nuclear power as a way to solve this trilemma, the long lead times involved are incongruent with a short-term fix.

Palantir climbs toward a fresh record high ahead of earnings report

Traders and Wall Street are waiting to see whether Palantir’s latest numbers after market close today will continue to beat expectations.

Matt Phillips6h

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