CEO Watchlist: Week In Review

March 9, 2025

TOP NEWS AFFECTING THE STOCK MARKET THIS WEEK:

Are We On The Edge Of The Next Stock Market Crash? (Source)

Stocks mentioned: $SPY, $DIA, $QQQ

On March 3, President Donald Trump announced that 25% tariffs on imports from Canada and Mexico would take effect on March 4, with no room for negotiation. This decision led to a significant sell-off in U.S. stock markets, with the S&P 500 (SPY) dropping 1.8%, the Dow Jones Industrial Average (DIA) falling 1.5%, and the Nasdaq Composite (QQQ) slumping 2.6%. This led to the Nadaq officially falling into correction territory, which is 10% off of its all time highs. But, what does this mean for the markets moving forward?

Data on the subject is mixed. Historical data from the month of March from 1950 to 2024 shows that the markets tend to perform well into the end of the month, as cited by Carson Research. At the same time, data also tells us that corrections in the stock market tend to happen at least once per year, and currently the last time we had a correction in the stock market was in 2023. That means we are overdue for a correction in the S&P500. With the S&P being down close to 8% this past week, we may see it fill down to that 10% correction territory before a potential bounce to have March end positive. As for a stock market crash, I wouldn't put it past this market which is filled with a lot of fear currently over unemployment, tariffs, inflation, GDP, and even market valuation. At the end of the day, anything is possible but again according to data, whenever the stock market hits correction terriotory, every single time, we have rebounded to new all time highs.

Nvidia In A Slump, But There's Still Hope For The Chip Market (Source)

Stocks mentioned: $NVDA, $AVGO, $GOOG, $META

Nvidia (NVDA) has fallen over 26% from its highs made in January of this year. This has clearly weighed on the semiconductor/chip market. Despite good earnings for Nvidia, the stock has fallen on concerns in the overall space. But, this past week we had a glimmer of hope with Broadcom's (AVGO) earnings, in which shares surged 6% after reporting a strong first-quarter and upbeat guidance. The company posted adjusted earnings of $1.60 per share, which beat Wall Street’s expectations of $1.49. The company also posted $14.92 billion in revenue, surpassing Wall Street’s expectations of $14.61 billion.

Broadcom's results provided a boost to the AI and semiconductor industry, which has struggled with high investor expectations. With Broadcom's outperformance, we can see that some of their biggest customers including Alphabet (GOOG) and Meta (META) are still investing plenty of money into the AI/chip market. With Google and Meta being two of Broadcom's biggest customers, this tells us that we're probably not at the peak of AI, rather we are in the early innings of a long-term bull cycle for AI and chips.
Is Robotics The Next Big Leg Up In The Stock Market? (Source)

Stocks mentioned: $TSLA, $ISRG, $AMZN

Bernstein analysts predict the humanoid robot industry will grow rapidly, with shipments potentially exceeding 1 million units annually by 2030-2032, reaching a $15-20 billion market size. They believe China will play a major role in shaping the industry due to its fast-paced innovation and diverse use case expansion, while key investment areas include humanoid OEMs, finger actuators, and tactile sensors. Although Bernstein believes China to be the major player in this space, we believe the U.S. will play just as big of, if not a bigger role, in the robotics industry.

Humanoid robots are only a fraction of the robotics market though. Companies like Tesla (TSLA) seem to be a clear leader in their industry, with their humanoid robot called Optimus. Analysts estimate Tesla's stock price to soar to 2-10x from its current valuations based on Optimus alone. Besides humanoid robots, other robotics are already taking over the industry, including robots in healthcare such as the Da Vinci System owned by Intuitive Surgical (ISRG) and warehouse/logistic robots used in companies such as Amazon (AMZN). Intuitive surgical has been able to demand a premium due to their advanced leadership. The Da Vinci system allows for microscopic surgeries to be performed with precise accuracy. That is why the stock is up over 32% within the last year. As for Amazon, a relatively unknown aspect of their business is robotics, and it's allowed Amazon to become the behemoth that it is today. We believe that Amazon's robotics segment along with their AI advancements will allow them to reduce spend over time while maximizing profitability.

INSIDER TRADES FROM THE WEEK:

1. International Business Machines (IBM) - David Farr, director, bought ~$300,000 of IBM stock on Feb. 28, 2025, and it was reported to the public later on the same day. (Source)

2. Berkshire Hathaway (BRK.B) - Charles Witmer, spouse of Berkshire Hathaway director Meryl Witmer, sold ~$1.55 million of Berkshire Hathaway stock on Mar. 3, 2025, but it was reported to the public on Mar. 4, 2025. (Source)

3. Super Micro Computer (SMCI) - Robert Blair, a director, sold ~$800,000 worth of SMCI stock on Feb. 28, 2025, but it was reported to the public on Mar. 4, 2025. (Source)