Investors wary about the bubble in artificial intelligence technology suppliers may consider the energy sector instead. Last week, Microsoft (MSFT) signed a deal with Constellation Energy (CEG) to restart its Three Mile Island plant.
Constellation will restore one of its units at the nuclear power plant in Pennsylvania to supply power to Microsoft for the next 20 years. This is the biggest power purchase agreement for Constellation. CEG stock gained 22.3% last Friday. The news lifted Vistra (VST) by 16.6%.
Vistra is simplifying its structure by acquiring the 15% equity interest in its subsidiary, Vistra Vision. The deal will not change its capital allocation priorities. Vistra is targeting a net leverage ratio of below three times.
GameStop (GME), which does not have a business turnaround in place, jumped by 12% last Friday. The stock must hold the $20 support line this week. Otherwise, investors will raise doubt about its out-of-date business. The firm needs to close more stores. Additionally, it needs to revive its product offering as more customers move on to game downloads.
Among the turnaround plays, watch Masimo (MASI) today. On September 14, the firm partnered with Qualcomm (QCOM) to develop a smartwatch reference platform.
MASI stock is trading at a discount. The firm claims that Apple’s (AAPL) Watch used its patented blood oxygen technology without its permission.