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On Tuesday, JPMorgan analysts maintained their Overweight rating on Veritiv Corp (NYSE:VRTV) with a steady price target of $132.00. The analysts addressed concerns regarding DeepSeek technology, acknowledging the contrast between recent uncertainties and the series of positive developments since last summer. Despite the market’s reaction to the news, which led to a pullback in Veritiv’s stock price, the analysts believe the downturn is exaggerated.
In their assessment, JPMorgan acknowledges that material efficiency gains in technology represent a risk, which they had accounted for in their market GW model as a "hedge." The analysts have been monitoring leading-edge tech companies for insights into the sector and, while not claiming to be technology experts, they were surprised that the source of optimization came from existing technology.
The commentary from JPMorgan comes after a period of positive momentum for Veritiv, which had been reporting favorable data points since the summer. The recent news around DeepSeek has introduced a degree of uncertainty that has affected investor sentiment and the company’s stock performance.
The analysts’ reiteration of the Overweight rating indicates confidence in the company’s long-term prospects despite the short-term market reactions. The $132.00 price target suggests that JPMorgan sees potential for Veritiv’s stock to recover and move higher than its current trading levels.
Veritiv Corp, listed on the New York Stock Exchange, has not issued any public comment in response to the JPMorgan analysts’ statements at the time of reporting. Investors and market watchers will likely continue to observe the company’s performance and any further developments regarding its technology and market position.
In other recent news, AI infrastructure companies experienced a downturn following the announcement of DeepSeek’s efficient open-source language model. This innovative model from China, which competes with GPT-4 while requiring less computing power, could potentially impact future capital expenditures in the AI industry. Companies such as GE Vernova, Constellation Energy (NASDAQ:CEG) Corp., Vistra Corp., and Ciena (NYSE:CIEN) Corp. have seen significant drops in their stock prices. With this development, there is a shift in the AI sector’s focus towards return on investment, leading to a reevaluation of the need for computing power. Analysts, including Jefferies’ Edison Lee, have noted this could result in questioning the projections for AI-related capital expenditures in 2026, with potential declines or stagnation on the horizon. These are some of the recent developments impacting the AI infrastructure industry.
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