gremlin
Introduction
Cummins Inc. (NYSE:CMI) recently announced its Q1 earnings that beat on top and bottom line, but decided to withdraw its full-year 2025 guidance for now due to the uncertainty of the tariffs on its operations. I
Cummins: Data Center Demand Will Help It, But I'm Not Looking To Invest Now
Summary
- Cummins Inc. delivered strong Q1 results, driven by robust demand in Power Systems and Distribution, especially from data center growth.
- Despite operational strength, management withdrew full-year guidance due to tariff uncertainties, raising near-term risk and volatility.
- Data center and AI-related capex from big tech will be a major long-term growth driver for Cummins, supporting optimism for key segments.
- Given tariff risks and lackluster performance in other segments, I rate CMI stock as a hold until there is more clarity on the outlook.
MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.
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