Analysts See Buy Opportunity in Lagging Stock – Plus, What’s Driving Nvidia’s Slide

Every weekday, the CNBC Investing Club holds a “Morning Meeting” livestream. Here’s a recap of key moments from Tuesday’s session.

1. The S&P 500 and Nasdaq faced downward pressure as Big Tech felt the impact of CoreWeave’s quarterly results released Monday evening. The AI infrastructure provider’s lower revenue outlook sparked concern among investors, sending shares plummeting approximately 14%. This development raises questions about the sustainability of the AI investment boom, particularly as leveraged positions increase. Jim Cramer noted a growing unease regarding the amount of “borrowed money now starting to go into the data center.” While no immediate portfolio changes are planned, this trend is being closely monitored. Furthermore, broader market sentiment was influenced by soft labor market data, with ADP’s payroll tracker indicating a weekly decline of 11,250 jobs on average for the four weeks ending October 25, suggesting a potential cooling in the labor market.
2. Linde shares experienced a boost, rising over 1%, following an upgrade from UBS. The firm revised its rating on the industrial gas giant to “buy” from a previous “hold-equivalent” rating. While the price target was slightly reduced from $507 to $500, UBS analysts cited projected earnings-per-share growth in 2026 as a significant catalyst for Linde. This positive assessment provides reassurance for the Club’s holding. The analyst upgrade highlights Linde’s robust pricing power, a key factor enabling the company to consistently surpass earnings expectations despite prevailing macroeconomic headwinds. The long-term contracts common in the industrial gas sector provide inherent revenue stability, further bolstering confidence in Linde’s future performance.
3. Nvidia stock experienced a decline of around 3% after SoftBank announced the sale of its entire stake in the chipmaker. Sentiment was further dampened by general weakness among AI-related stocks. According to reports, the sale of Nvidia shares is intended to generate capital for SoftBank’s substantial $22.5 billion investment in OpenAI. While the news itself is not a direct cause for alarm regarding Nvidia’s prospects, the CNBC Investing Club maintains its “own, don’t trade” thesis on the stock, emphasizing a long-term investment horizon. The Club views this development as reinforcing concerns around the increasing debt associated with the rapid expansion of AI data centers. The long-term implications of such substantial investments and the potential for market saturation are key considerations.
4. The rapid-fire segment covered a range of stocks, including CoreWeave, Paramount Skydance, Amgen, Dutch Bros, and Coterra Energy.

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