Midday Stock Movers: Nvidia, Intel, Constellation Energy, and More

The stock market experienced significant midday movements today, with several notable stocks making waves. Among the standouts were Nvidia, Intel, Constellation Energy, and Berkshire Hathaway. Let's delve into the key developments driving these stocks and explore their investment implications.

Nvidia (NVDA) surged 1.9% midday, driven by its upcoming addition to the Dow Jones Industrial Average (DJIA). On Nov. 8, Nvidia will replace Intel (INTC), which fell 2.6% following the announcement. Nvidia's inclusion in the DJIA signals a shift in market sentiment towards growth stocks, with the tech giant's stock soaring 178% this year. Nvidia's CEO, Jensen Huang, recently stated that demand for its Blackwell chips is "insane," with production fully booked through next year. This strong demand and market recognition could drive Nvidia's stock performance, although dividend payouts remain uncertain. Nvidia has historically prioritized reinvestment in R&D over dividends, but its growing cash flow and market dominance may encourage it to initiate or increase dividends in the future.


Constellation Energy (CEG) tumbled 10.6% after the Federal Energy Regulatory Commission (FERC) blocked a proposal to boost power from the Susquehanna nuclear plant to Amazon's data center. The request, filed by grid operator PJM Interconnection and Talen Energy's Susquehanna plant, aimed to increase the power supply to 480 megawatts from 300. This decision affects not only Talen but also companies like Constellation Energy, which had been eyeing similar deals to meet surging power needs of data centers. In September, Constellation revealed plans to restart the Three Mile Island nuclear plant through a 20-year power purchase agreement with Microsoft, which will use the electricity to support its data centers. This deal is Constellation's largest power purchase agreement to date. The FERC's decision may hinder such arrangements, potentially slowing the growth of data centers and the AI industry they support.


Berkshire Hathaway (BRK.A) shed 2.3% midday after the conglomerate posted Q3 results. Berkshire Hathaway's cash reserves hit an all-time high of $325.2 billion in the third quarter, up from $276.9 billion, as Warren Buffett accelerated the company's stock-selling spree. Buffett continued to trim Berkshire's massive holdings in Apple and Bank of America. Over the past four quarters, Berkshire has sold off a quarter of its Apple position, while a recent selloff of Bank of America has netted more than $10 billion since mid-July. Overall, Berkshire offloaded $36.1 billion of shares through the third quarter, as the 94-year-old investor remains focused on strategic exits. Class A shares of Berkshire are up 22% this year.

As an investor focused on stable profits and cash flows, consider exploring opportunities in sectors like utilities, renewable energy, and REITs. These sectors offer consistent, inflation-protected income and are less susceptible to the volatility and uncertainty of AI ventures. Funds like the Cohen & Steers Quality Income Realty Fund (RQI) provide stable yields and potential for capital gains, while adaptable investments like the XAI Octagon Floating Rate & Alternative Income Trust (XFLT) and REITs like AWP and GOOD offer diversification and growth potential. Additionally, reliable income-generating investments like Scotiabank offer high dividends and institutional stability.

In conclusion, today's midday stock movers highlighted the shifting dynamics of the tech sector, with Nvidia's DJIA inclusion signaling a growing emphasis on AI and data centers. Meanwhile, Constellation Energy's setback underscores the regulatory challenges facing energy providers seeking to meet data centers' power demands. Investors should remain vigilant and consider income-focused strategies to secure steady returns in an ever-changing market landscape.