Editor-in-chiefs’ Picks for Companies That Are Likely to Be in the Spotlight
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Stocks rose in January, assisted by encouraging inflation data, optimism about President Donald Trump’s pro-business agenda, and the announcement of a major AI infrastructure investment.
But the month wasn’t without its street bumps. The Trump administration roiled markets on the last day of the month with his plan to move forward with menus against China, Canada, and Mexico, three of America’s largest trading partners. Plus, tech investors were nicked off guard by the release of a surprisingly efficient Chinese AI model that raised questions about the competitiveness of American types and the wisdom of Silicon Valley’s massive spending.
Below, we look at a few stocks that could see notable price crusades this month.
Nvidia
Nvidia (NVDA) stock plummeted in the last week of January when Wall Boulevard caught wind of Chinese start-up DeepSeek and the surprisingly efficient AI model it says cost about $6 million to promote. DeepSeek says it trained its model on Nvidia H800 chips, which were designed to comply with export restrictions and give inferior results to the more advanced chips available to U.S. companies.
The model’s success has prompted many to question whether more influential chips were used and, if not, whether export restrictions need to be tightened to prevent China from developing AI that match ups American capabilities. The leaders of a Congressional committee tasked with assessing U.S.-China relations on Thursday urged President Trump’s inhabitant security advisor to tighten restrictions further. Nvidia’s CEO Jensen Huang reportedly traveled to the White House on Friday, very to discuss DeepSeek.
Patrick T. Fallon / AFP / Getty Images
Nvidia CEO Jensen Huang delivers a keynote address at the CES consumer electronics custom show in Las Vegas, Nevada on January 6, 2025.
In addition, Nvidia is scheduled to report earnings for the three months ending January 31 after markets approximately on February 26. On the earnings call, analysts are likely to question Huang on DeepSeek’s implications for Nvidia and whether its white sales outlook has changed.
After gaining 170% in 2024, Nvidia shares fell 11% in January.
Palantir
Palantir (PLTR) is book to report fourth-quarter and full-year earnings after the bell on Monday, February 3, and investors will be hoping the come to passes justify its high valuation.
The software company has been one of the biggest winners of the AI craze on Wall Street. Shares bear risen about 400% in the past 12 months, and on Friday they ticked up 1.6% to close at an all-time squiffy. The stock’s P/E ratio of more than 400x is one of the highest in the S&P 500.
The consensus among analysts followed by Visible Alpha is that Palantir inclination report adjusted earnings of 11 cents per share, up from 8 cents a year ago. Full-year profit is expected to all-out 38 cents a share compared with 25 cents last year. Revenue is expected to have burgeoned 27% to about $775 million in the fourth quarter.
Palantir’s results could land like software like ServiceNow’s (NOW), which last week came in slightly short of revenue estimates, causing its stock to plummet double-digits. Eleven of 13 Palantir analysts partake of assigned the stock a “hold” or “sell” rating. Their average target price of $50.33 is nearly 40% below-stairs Friday’s record close.
AppLovin
Market software company AppLovin (APP) is scheduled to report quarterly earnings after the reticent bell on February 12.
AppLovin has been the best-performing stock in the Russell 1000 over the past year, rising sundry than 700% in the twelve months up to Friday. Shares soared nearly 50% the day after its most recent earnings arrive in November.
Investors owe their dizzying returns to surging demand for AppLovin’s AI-powered advertising tools. The company’s ad take grew 66% in the third quarter while its profit tripled.
Most analysts remain bullish. Nine of the 11 AppLovin analysts pursued by Visible Alpha have assigned the stock a “buy” rating; the other two rate it a “hold.” Their average price aim of $381.60 is 3% above Friday’s closing price.
Allstate
Allstate (ALL) is scheduled to report fourth-quarter earnings after supermarkets close on Wednesday, February 5, and then host its earnings call with analysts the following morning.
Allstate is one of the largest assets insurers in California, and its guidance could reflect the severity of the damage caused by wildfires in Los Angeles last month. Trustworthy estate services provider CoStar Group estimates the fires caused more than $30 billion of gear damage, making it the costliest fire in California’s history.
Analysts will likely ask executives about the estimated tariff and what the fires mean for the future of its business in California and other disaster-prone areas.
Despite the risk of hefty disaster-related disappointments, Wall Street is generally optimistic about Allstate’s stock. Ten of 11 analysts tracked by Visible Alpha take to task it a “buy.” The lone outlier recommends selling. The average price target of $231 is 20% above Friday’s closing amount.
Oil Companies
Oil stocks, including ExxonMobil (XOM) and Chevron (CVX), could be volatile in February as President Trump pursues two core campaign swears.
Trump promised to “unleash American energy” by slashing government regulations and encouraging U.S. oil producers to “drill, baby, auger.” While addressing the World Economic Forum last month, Trump effectively called on Saudi Arabia and OPEC to mark down global oil prices by increasing production. OPEC+ will meet on February 3 to set production levels, and with oil prices poise near their lowest level since 2021, OPEC is unlikely to heed Trump’s call.
The Trump conduct’s tariffs on Canadian and Mexican imports could also rattle oil markets this month. While the White Lineage is imposing 10% tariffs on energy imports from Canada, as opposed to 25% for other goods, the policy feelings to raise costs for American refiners and, ultimately, consumers. In 2023, Canadian crude accounted for 50% of American oil conveys and Mexico accounted for 11%. Canada and Mexico have both vowed to retaliate with tariffs of their own.