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We recently compiled a list of the 10 Firms Lead Thursday's Rally on Better Earnings, Bargain-Hunting. In this article, we are going to take a look at where Vistra Corp. (NYSE:VST) stands against the other stocks.
Optimistic sentiment continued to drive Wall Street on Thursday, with all major indices closing higher.
The Dow Jones Industrial Average rose by 0.38 percent, the S&P 500 grew 0.53 percent, and the Nasdaq Composite was up by 0.25 percent.
Ten companies posted notable gains, largely fueled by strong earnings results for the fourth quarter and full-year 2024.
To come up with Thursday's top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
Solar panel workers installing a new farm for clean energy generation.
Vistra Corp. (NYSE:VST)
Vistra Corp.’s share prices increased by 13.57 percent on Thursday to finish at $176.30 each as investors resorted to bargain-hunting after plunging by 30 percent earlier this week amid news that China-based DeepSeek, a new competitor to OpenAI’s ChatGPT, successfully trained its own models like OpenAI and Google for only $5 million, or a fraction of the US companies’ cost in developing their models.
The news dragged down sentiment among Vistra investors over fears that the huge technology companies developing Artificial Intelligence may not need as much power as previously anticipated.
However, Thursday’s bullish sentiment was buoyed by analyst statements that DeepSeek was not built for only $5 million, with a report from Bernstein saying that claims of building an AI system comparable to OpenAI for just $5 million are not true.
According to the report, DeepSeek's released amount may only consider the computational resources, leaving out the significant costs related to research, experimentation, and other developmental expenses.
Overall VST ranks 3rd on our list of Thursday's top gainers. While we acknowledge the potential of VST as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.