Amazon Reports Friday. AWS Says It's Sold Out.

$Nebius(NBIS.US) From confidence to caution 📉My $Nebius(NBIS.US)  position is currently sitting at approximately 30% in paper losses. I was initially confident in Nebius because of the long-term growt...

$Nebius(NBIS.US)

Context: Share price of Nebius is falling, giving back some recent gains. Investors grew more cautious about AI infrastructure spending as oil prices rose and tech stocks fell. Brent crude rose above $112 per barrel amid renewed Middle East tensions. Higher oil prices fuel inflation fears and could keep interest rates high. This could raise borrowing costs for AI infrastructure firms that need billions to build data centers. Weak reactions to tech earnings also added to market pressure. Higher borrowing costs could make data center projects more expensive for CoreWeave, Nebius, and IREN. If the cost of expansion rises faster than revenue, their profits could come under pressure.

My Trade: Nothing changes. The potential for growth remains, but the funding risk is also there. Risk to reward ratio might be off at current prices, so I'm waiting for lower prices before considering adding.

Takeaway: Nebius face funding risks, implied from the Coreweave situation from last week. Nebius also needs capital to expand its data center capacity and meet demand for AI computing. Investors will watch whether revenue growth can support the cost of this expansion. @Captain's Treasure

$Keppel DC Reit(AJBU.SG)

Context: Keppel DC REIT has benefited from the strong data centre theme, but even a good sector doesn’t mean the share price will keep going up. At some point, need to look at whether the valuation still makes sense.

My trade: I decided to sell and take profit first. Rather lock in what I’ve earned than get too greedy and end up giving back my gains. Can always look for another entry if the price becomes attractive again.

Takeaway: I still believe data centres have long-term potential lah, just not every stock needs to be held forever. Sometimes taking profit and keeping cash ready is also a strategy. Money in the pocket first, opportunities can come again.

Morgan Stanley: We believe AWS's planned incremental GPU purchases will skew to Vera Rubin and Rubin Ultra, we see these extra chips driving an extra ~2 GW /~1 GW of compute capacity in '27/'28 vs. our prior estimates.

$Comfort Systems USA(FIX.US)

Context:

FIX has had a pretty rough week, dropping over 16% before bouncing around 1.7% in the latest session.

What interests me about Comfort Systems is that it plays a less obvious role in the AI boom. Everyone talks about GPUs, but data centers also need cooling, electrical systems and skilled workers to actually get built.

The company entered Q3 with a record $14.06B backlog, which is impressive. Still, I can see why the market is getting nervous after such a strong run.

My Trade:

I am keeping FIX on my long-term watchlist, but ahead of October 22 earnings, I'm watching whether that backlog translates into profitable growth without margin pressure from labor costs.

Takeaway:

A great growth story doesn't always mean a great entry price. Expectations matter.

$Centrus Energy(LEU.US)

Context: The nuclear energy sector has the potential to benefit from the energy demand required by the AI infrastructure. I selected LEU to gain direct exposure to the nuclear fuel supply chain. This energy source has advantages such as providing carbon free power to support expanding AI data center compute needs. Centrus Energy is a leading supplier of enriched uranium and specialized nuclear fuel such as HALEU for advanced small modular reactors.

My trade: I initiated a new long position in Centrus Energy to take advantage of the recent stock market correction. Since stock price has been trending down, I will monitor and add more shares progressively if stock price corrects more to lower my cost price more while waiting for price recovery.

Takeaway: Investing in high beta thematic sectors like nuclear energy requires managing price volatility, since early stage infrastructure plays can experience drawdowns even if having strong demand. All investments come with risk, so due diligence is needed, especially true for individual stocks which are higher risks.

📌 This move appears to be more sector rotation than company specific news, either capital flowing into consumer discretionary after a period of weakness. Falling bond yields are helping consumer discretionary stocks regain momentum. For AMZN lower rates support consumer spending and valuation multiples. For TSLA, easing financing costs could improve preference for growth stocks rather than company specific news.