Three Things (1/29)

Oh no, Nvidia

AI anxiety … Nvidia (NVDA) stock took a staggering 17% dive on Monday, wiping nearly $600 billion off its market cap—the largest single-day drop for a U.S. company in history. The GPU giant was shaken by market fears surrounding Chinese AI startup DeepSeek. The newcomer unveiled a breakthrough AI model built at significantly lower costs, sparking concerns about diminishing demand for Nvidia’s high-priced chips.

Nvidia, currently trading at a lofty 56x earnings, faced a reality check as investors reassessed its growth potential. This sharp decline sent ripples through markets, dragging the S&P 500 down by 2%—a rare feat for a single company.

Despite the chaos, retail investors rushed to buy the dip, with Monday marking a record-breaking influx of small investor capital into Nvidia shares. Data from Vanda Research showed retail traders scooped up $470 million in stock, banking on a rebound from a company that has historically dominated the GPU space.

Whether Nvidia’s tumble marks a turning point or a temporary blip remains to be seen. The DeepSeek announcement, while disruptive, could also lower AI costs and expand demand, offering Nvidia a potential silver lining. Nvidia rebounded nearly 9% on Tuesday, with the stock currently down 5.25% so far in 2025.

Chevron goes electric

Power play… Chevron (CVX) is stepping into the electricity market, partnering with hedge fund Engine No. 1 and GE Vernova (GEV) to accelerate natural gas power plant projects. This strategic alliance aims to address skyrocketing U.S. energy demand, driven by AI’s rapid expansion and the proliferation of energy-intensive data centers. Electricity consumption is projected to climb 16% by 2030, more than triple previous estimates, according to McKinsey. 

Chevron and GE Vernova, the energy division of the recently reorganized General Electric, will leverage Engine No. 1’s expertise in capital allocation to fast-track the deployment of natural gas power plants. The facilities will serve as a critical stopgap in ensuring reliable electricity during the country’s ongoing “re-industrialization,” as described by Engine No. 1 founder Chris James. Per James, the partnership is all about “allocating capital in an economy that is undergoing a re-industrialization and needs dramatically more power.”

This move marks a major shift for Chevron, traditionally a fossil fuel giant, as it begins competing in the electricity sector. It also reflects an evolution for Engine No. 1, whose 2021 campaign against ExxonMobil emphasized ESG priorities and cleaner energy transitions. Now, the hedge fund is collaborating with industry heavyweights to address immediate energy needs with lower-emission solutions.

GE Vernova’s involvement is also significant, following GE’s split into three standalone businesses—healthcare (GEHC), aerospace (GE), and energy (GEV). By focusing on energy infrastructure, Vernova is poised to play a central role in the push for more sustainable and scalable power solutions.

Tech giants pursue TikTok

Many suitors …President Trump revealed Tuesday that Microsoft (MSFT) is exploring a deal to acquire TikTok’s U.S. operations, alongside Oracle (ORCL) and other interested parties. Rumors also swirl around Elon Musk’s potential involvement via X, though details remain speculative. The move comes as TikTok works to comply with a U.S. law requiring its separation from China-based parent company ByteDance by March 2025. 

Trump extended the compliance deadline by 75 days earlier this month, temporarily restoring TikTok’s service in the U.S. The ban saga began in August 2020, when Trump himself issued an executive order mandating ByteDance divest TikTok’s U.S. assets, citing national security concerns. While President Biden revoked the ban in 2021, he signed subsequent legislation restricting TikTok on government devices and eventually passed a law requiring ByteDance to sell U.S. operations by January 2025. A Supreme Court ruling upheld the law, leading to TikTok’s temporary shutdown (and ensuing user meltdown) on Jan. 18.

Now, TikTok’s survival depends on a U.S.-based buyer meeting regulatory and security demands. In addition to Microsoft and Oracle, privately-held Perplexity is also in the mix, per reports, with each of these seeing value in TikTok’s massive (and highly engaged) user base and corresponding ad revenue. With Musk’s name also in the mix, rumors about the app’s future stateside continue to swirl. 

One more thing: Actually, a few things: Today, we’ll get earnings results from Meta (META), Microsoft (MSFT), and Tesla (TSLA). Fed Chair Jerome Powell will also provide remarks following this month’s FOMC meeting, with analysts anticipating a pause on rate cuts.

Disclosures

As of writing, NVDA, MSFT, and META are holdings in Titan's Flagship strategy. ORCL is a holding in Titan's Offshore strategy. GE is a holding in Titan's Opportunities strategy. TLSA is a 0.61% position in the ARK Venture Fund.

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