Thanks,
Jason
Growth stocks have been hit hard and fast, in one of the sharpest corrections we have ever seen. The three stocks noted are all closely tied to AI data centres. Business remains solid, with of course some uncertainty as to long term demand prospects. But valuations are much more attractive now, of course, with VRT at 24X earnings, and CLS at 19X. NBIS is still expected to show a loss in 2025. We think the sector is OK, and these three should be fine overall. There may of course be more volatility ahead, but for a growth investor, from current levels, we would be comfortable holding these. We would keep an eye on position sizes, as we doubt the period of volatility is over. But at some point there will be more tariff or economic clarity. Right now sentiment is highly negative and it won't take much positive news to set up a short term bounce rally. Longer term, for these three, we think the fundamental growth trends should be in place for a few years at least.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NBIS.