If you are worried about how to invest in AI stocks amid the fallout from China’s DeepSeek AI program, you might be in luck.

In 2024, almost one-third of venture capital funds went to AI companies. But how do you identify the ones with long-term potential?

Maybe it’s a good idea to know the difference between strategic and financial investors in these deals.

I have the down-low in the Visual of the Week section. Read on!

Moving on, here are the news that shocked the world…

Nvidia: Holy moly, Nvidia’s revenue grew by 78% for 4Q 2024, bringing the 2024 full-year revenue to US$131 billion. Who said DeepSeek killed Nvidia off? [Read More]

Apple: Apple want a piece of the AI slice too. It is committing US$500 billion in investments into the US AI sector after Trump said, “They don’t want tariffs”. [Read More]

Buffet: Warren Buffet is pulling a Scrooge. It is gathering a cash war chest of US$334 billion. Something might be coming as he usually does so to buy more stocks especially during a recession [Read More]

Meta: Right after it gutted 5% of its workforce, Meta is increasing bonuses for its executives from 75% to 200% of base salary. Sus move to be honest [Read More]

Starbucks: Starbucks is trying to get more bang for the buck but it’s doing so by laying off 1,100 support staff. [Read More]

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Here are the news covering the Asia market…

Unisplendour IPO: Unisplendour, a Chinese IT service company, is planning to raise US$1 billion in the Hong Kong market this year [Read More]

OCBC: Full-year 2024 profit for OCBC rose by 8% to SG$7.6 billion driven by higher net interest, insurance and trading income [Read More]

ValueMax: Profit for full-year 2024 for ValueMax increased sharply by 56% to SG$83 million, driven by jewelry, gold and pawnbroking activities [Read More]

Sembcorp: Sembcorp Industries’ net profit rose by 7% to SG$1.0 billion for 2024 due to higher contribution from gas and integrated urban businesses [Read More]

MAS: The Monetary Authority of Singapore is launching a SG$5 billion fund to work with selected fund managers to invest in Singaporean stocks [Read More]

See below for our handpicked analyst reports:

Can you believe it?

In 2024, a third of venture capital funding actually went to AI companies, according to data from Citizens Bank.

And it’s not just financial investors (who want returns and profits) but also strategic investors getting into the action.

The likes of Microsoft and Amazon have made their investments into Inflection and Anthropic with specific intentions of using them to improve their companies.

Hence, these are actually ‘long-term’ investments where they have skin in the game to ensure their investments benefit them.

There has been a lot of speculation lately on the volatility of investing in AI stocks - especially so with the DeepSeek event that caused a massive sell-off in US AI stocks. However, investors should keep a close tab on the deals being brokered from strategic investors.

Financial investors come and go, but strategic ones remain for a long time. And seeds planted now might blossom with long-term commitments.

Recently, I have been playing around with Shareinvestors tool of ‘Intrinsic Value Analysis’. If you don’t know what it is about, basically, you do an intrinsic value analysis to find the ‘true’ value of a company.

Many times, a company might trade below, at or above its intrinsic value. And getting a good hang of this enables me to find out whether I should buy or sell a company.

But the analysis does require in-depth knowledge of several valuation models that could be difficult for regular people to wrap their heads around.

Luckily, as I used the tool, I found that it’s very intuitive to understand. You don’t need technical knowledge to use it.

For example, the OCBC analyst report by Maybank above highlighted that OCBC currently only has about 8% upside for share price gain at a target price of SG$18.55.

I wanted to know quickly what Maybank assumed for its earnings growth in the future to arrive at that target price.

The tool allows me to do that. I just adjusted the ‘earnings per share growth rate (%) and found that a 6.00% growth rate gives a close target price.

Whether this assumption is realistic for Maybank to do is up to you to decide. But it does provide a quick way to check for us who lacks the time to do a lot of research.

If you are interested in using the tool, use my code: JYSCA5 when you register for the account on ShareInvestor

Hope the above is fruitful for you all!

Cheers,
James Yeo