(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are trying to figure out if the move higher in Treasury yields will persist. Also, the quantum computing trade is being impacted by comments from Nvidia CEO Jensen Huang. ‘Worldwide Exchange’ Pick: Big banks Meghan Shue of Wilmington Trust sees big banks as a potential winner from deregulation and Federal Reserve rate cuts in 2025. “Banks were a key part of the broadening leadership story that we saw in the second half of last year, but that was almost totally reversed in December. We expect long rates to remain elevated, we think short rates will come down. You are going to get a nice rate environment and steeper yield curve for banks. The thing to watch will be credit quality,” said Shue on ” Worldwide Exchange .” The SPDR S & P Bank ETF (KBE) is flat so far in 2025. Last year, the fund rose 20.5%. Battleground stock: Palantir Palantir was the worst performing stock in the S & P 500 on Tuesday after finishing as the best performing stock in 2024. One factor: Cathie Wood sold more than $15 million worth of Palantir shares across all of her Ark funds on Tuesday. On “Worldwide Exchange,” we had a bull vs. bear debate with Derek Yan of KraneShares — which owns the stock in its Artificial Intelligence ETF (AGIX) and Malik Ahmed Khan of Morningstar, who has a $21 price target. “We believe Palantir could be the go to operating system for enterprises in the AI age. We are talking about a potential trillion dollar market opportunity here,” Yan said. Kahn said he sees a lot of upside in Palantir’s government and enterprise businesses, but has issue with the stock’s valuation at more than 150 time forward earnings, ” The valuation is getting out of hand,” said Kahn on Worldwide Exchange, “if you think about trying to bake in the assumptions that would take you to the current stock price, those are some very very optimistic assumptions.” Quantum computing and Nvidia CEO Jensen Huang Quantum computing stocks are trading lower in the premarket after comments from Nvidia CEO Jensen Huang about the outlook for “useful” quantum computers. It will be “15 years for very useful quantum computers, that would probably be on the early side. If you said, you know, 30 is probably on the late side. But if you picked 20, I think, I think a whole bunch of us would believe it,” Huang said Greg Branch of Branch Global Advisors thinks investors should pay close attention to the Huang comments. “Jensen’s comments had a natural impact,” said Branch. “Many thought we would see the same earnings ‘s-curve’ [as artificial intelligence] within five or six years and that was worth waiting around for. Is that worth waiting around for if it’s 20 years away, probably not.”
