Do you have any thoughts on cpx?

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Asked on February 1, 2025 11:03 am
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Hey there. It's a high quality utility, but it is under a bit of pricing pressure due to the DeepSeek AI situation. Effectively, DeepSeek is an AI model that can produce similar results to GPT but with much less processing power.

Capital Power was set to be one of the main beneficiaries of a large data center upgrade here in Alberta. Although that is still set to go through, the company has faced some volatility in regards to the possibility of lower power demand needed for future data centers because of DeepSeek.

I think it is a high quality utility. If someone wanted to buy it right now, I wouldn't have any issues with it. But, I'd imagine it will be facing some large volatility over the short-term here as more DeepSeek news comes out and these technology companies modify their capital expenditures (if they do at all)

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Posted by Dan Kent
Answered on February 2, 2025 9:21 am