📊 Can Nvidia And Palantir Fix AI’s Looming Power Problem?

This week, Palantir, Nvidia, and CenterPoint Energy announced the system called the Chain Reaction, an AI-powered software platform designed to speed up the construction of large AI data centers. The system applies Palantir's software to Nvidia-based models to pull together information from emails, schedules, and project tools. Then, the system highlights delays and dependencies across permitting, grid upgrades, supply chains, and construction. The goal is to help chipmakers, utilities, and data center developers keep complex projects on track so that power and infrastructure are ready when new capacity is installed.

AI is arriving in a power system that is already under strain. In the United States, data center electricity demand is expected to almost double from about 17 gigawatts in 2022 to around 35 gigawatts by 2030, with AI a major contributor to that increase. Large sites can require several gigawatts of capacity on their own, and new grid connections and transmission lines often take 3 to 5 years to complete, especially in high-growth regions. Chain Reaction is presented as a way to shorten those timelines by giving all parties a shared, data-based view of risks and key milestones.

The deal suggests that Nvidia is trying to strengthen its role in AI beyond chip sales by helping solve the hard limits of power and infrastructure. Palantir is stepping further into the sort of long-term, regulated projects where better planning can shape very large investment plans. Last week’s news report stated that Meta is considering spending billions on Google's AI chips for data centers. This, along with the Nvidia-Palantir deal, shows big tech firms are willing to use more than one type of processor. Controlling the planning and coordination layer for new AI facilities looks like a strategic way to stay central to the industry, regardless of which chips end up being used.

Labor crosscurrents: United States layoff announcements have risen to about 1.17 million this year. At the same time, the Automatic Data Processing National Employment Report showed private payrolls down 32,000 and jobless claims at a Thanksgiving-distorted three-year low of 191,000, pointing to a "no-hire, no-fire" market that quietly raises recession risk.

Fed cut odds: Global equities firmed, and United States yields dipped as traders priced in almost a 25 bp Fed cut at the next meeting, directly supporting equity valuations and lowering funding costs at the margin.

House view shift: Bank of America now expects a December Fed cut and two more in 2026, reinforcing the notion of a lower-for-longer policy path, which favors duration assets and high-multiple growth names.

Housing squeeze: United States home prices are only modestly above year-ago levels, and mortgage rates have come off their peaks, but affordability remains tight and leaves housing vulnerable if jobs or rates move the wrong way.

Powell's replacement: Leadership risk is back on the radar after President Trump said he has picked a successor to Fed Chair Powell, widely believed to be Kevin Hassett, but will reveal the name later, adding another layer of policy uncertainty for markets.

Mega deal of the day: Netflix has agreed to buy Warner Bros. Discovery's studios and Max streaming business for roughly $72 billion in equity value; Netflix shares slip as investors digest the price tag, while Warner Bros. Discovery jumps on the takeover premium.

Backup power play: The United States is considering leveraging approximately 35 gigawatts of back-up generators within data centers and big-box retailers such as Walmart and Target, the equivalent of about 35 nuclear plants' capacity, to meet power demand driven by AI applications. This is upside revenue but with regulatory and environmental risk.

Natural gas demand: Natural gas producers are rallying after Henry Hub prices surged past $5 per million Btus of energy to the highest in 2022, boosting gas-linked cash flows while raising energy-cost pressure for power-intensive industries.

Santa or not: Wall Street debates whether a classic Santa Claus rally can survive with the 10-year Treasury yield still just over 4% because any disappointment on Fed cuts could quickly chill year-end risk appetite.

Milk and margins: Walmart's $350 million investment in a second United States milk processing plant tightens control of a key staple, and shows how vertical integration can support margins and supply security.

AI factories: Nvidia is marketing its Blackwell-based GB200 NVL72 "AI factories" as dramatically more energy- and water-efficient compared with traditional air-cooled configurations. That changes the economics of scaling hyperscale data centers.

Code red: OpenAI CEO Sam Altman issued a "code red" and shifted teams to hone ChatGPT as competition from Google's Gemini and Anthropic heats up, highlighting how fast the AI race can shift perceived leaders and valuations.

Marvell's optical bet: Marvell's deal of about $3.25 billion for Celestial AI is a bet that optical interconnect will be essential in next-generation AI data centers, and it heralds further consolidation in the infrastructure layer.

Intel's foundry option: Intel's jump on reports Apple may use its foundry for low-end M-series chips later this decade underscores how even a partial Apple win could materially de-risk Intel's turnaround story.

Electric Vehicle price reset: Tesla introduced lower-priced "Standard" variants of the Model 3 and Model Y in Europe to offset sluggish regional sales and increasing competition. Its stock trades a bit softer as the market weighs margin pressure against volume gains.

AI data layer: MongoDB's surge of over 20% after beating revenue expectations and raising guidance underlines ongoing demand for infrastructure software that can plug into AI workloads and consumption-based pricing.

Value retail: Dollar General's higher profit forecast, powered by bargain-hungry shoppers, underlines how value-focused retailers can still grow earnings even as many consumers feel stretched.

Other interesting reads:

Platform penalty: The European Union fined Elon Musk's X around $140 million under its Digital Services Act for misleading blue checkmarks, opaque adverts, and limited access to data for researchers. TikTok dodged a fine after agreeing to changes for greater transparency, proof that Brussels is willing to hit big platforms hard to enforce its online content rules. (The First Strike)

Jobs surprise in the north: Canada's unemployment rate sank to 6.5% in November, the lowest in 16 months, thanks to a spate of part-time hiring that added 53,600 jobs and brought the total new positions created since September to 181,000, calming fears of a recession and making it less likely the Bank of Canada will cut rates again anytime soon. (The Jobs Jolt)

Hepatitis B showdown: A new CDC vaccine panel appointed by Health Secretary Robert F. Kennedy Jr is weighing whether to scrap the long-standing universal hepatitis B shot at birth and limit it mostly to babies of infected mothers. This is a shift that public health experts say could reverse decades of progress and lead to more lifelong liver disease. (The Vaccine Fight)

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🟩 Up this week

GE Vernova (GEV) +4.86% WTD: The stock rose after the major broker raised its price target on the stock, citing robust demand for energy technology tied to data centers and EV infrastructure, supporting a stronger medium-term growth runway. (The Broker Upgrade)

Salesforce (CRM) +13.10% WTD: Salesforce rose after it boosted its fiscal year 2026 outlook, reinforcing investor confidence that AI-driven products can sustain double-digit growth and justify premium software multiples. (The Fantastic Outlook)

Hormel Foods (HRL) +5.56% WTD: Hormel rose after projecting annual profit above estimates on higher prices and cost-cutting plans, pointing toward a path to margin recovery in 2026. (The Recovery Path)

Boeing (BA) +7.22% WTD: Boeing rose over the week after a Reuters wrap highlighted it among cyclicals benefiting from stronger rate-cut optimism. That bolstered sentiment toward rate-sensitive industrials. (The Rate Play)

🟥 Down this week

Kroger (KR) -6.03% WTD: Kroger fell after its quarterly revenue came in below estimates, and it booked a $2.6 billion impairment charge, adding to margin pressure and asset quality concerns. (The Revenue Miss)

Marriott International (MAR) -3.58% WTD: Marriott traded lower after guiding to softer United States performance and lower RevPAR, which points to slower growth in lodging cash flows. (The Lodging Cash)

Snowflake (SNOW) -7.95% WTD: Snowflake slipped this week after guidance pointed to slower product revenue growth despite a solid quarter, fuelling worries about decelerating demand and pressure on margins. (The Slippery Slope)

Protara Therapeutics (TARA) -26.22% WTD: Protara tumbled this week after announcing a $75 million equity and pre-funded warrant offering, raising concerns about dilution and the strength of its funding runway. (The True Concerns)

That’s the wrap for this week’s market movements. We’ll be back next week with more updates on our live portfolio.

Until then, happy investing!
— The Investogy Team, Kätlin & Siimon

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