Market Experts Optimistic: DeepSeek's Potential Impact on Stock's Growth
In a stunning turn of events, the Chinese AI model DeepSeek has ditched ChatGPT and claimed the top spot as the U.S.'s most used free app. This unexpected rise has got the tech world buzzing, casting doubt on the supremacy of US tech giants – particularly Nvidia.
DeepSeek's latest version, the efficient DeepSeek-V3, hit the scene on January 10. Taking the world by storm, the model is said to work seamlessly with cheaper chips and requires less data, making it a major advantage over its competitors.
Some speculate that Nvidia's H800 chips, despite their limited power, were instrumental in training the model. The success of DeepSeek raises questions about the unassailable nature of US tech dominance in the industry.
Stocks like Nvidia have suffered temporary losses of up to 20 percent since DeepSeek's release, but the industry experts remain optimistic. They believe that the US giants with their infrastructure and ecosystem are far ahead of China and will continue to lead the race.
Analysts at Wedbush recognize DeepSeek's potential threat, but emphasize that the 'Magnificent 7' – the leading US tech titans – hold an advantage that China can't match.
Daniel Newman, Futurum's chief strategist, points out the Jevons Paradox. Efficiency gains often lead to increased use, and DeepSeek's efficiency could drive more demand for AI infrastructure, rather than reducing it.
The claims about DeepSeek's costs and efficiency are also not entirely clear-cut. R1, another language model released at the end of December, allegedly cost just $5.57 million to develop in two months. Yet, these costs might only cover the training phase, and the costs for previous research and tests were not taken into account.
There's no reason to panic, according to Stacy Rasgon of Bernstein and Seema Shah of Principal Asset Management. The potential for AI compute demand remains vast, and innovations like DeepSeek could boost global productivity.
Short-term turbulence aside, many analysts see long-term positive effects. Efficiency gains could fuel demand for computing power and fortify the positions of US tech giants. Investors should stay calm, as the opportunities outweigh the risks.
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Curious about how Cathie Wood capitalized on this trend? Read more about it in "During DeepSeek Storms: Cathie Wood Swiftly Pounced at This Famous Tech Giant."
Conflict of Interest Disclosure: The publisher Boersenmedien AG, headed by Bernd Foertsch, has directly and indirectly taken positions in the financial instruments mentioned, which could benefit from the potential price movements: Nvidia.
Conflict of Interest Disclosure: The index price is derived from the publisher's developed index. The publisher has granted a license to the index issuer for its use and received payments from the issuer in return.
The efficient DeepSeek-V3, integrating with cheaper chips and requiring less data, is challenging the dominance of traditional AI models powered by expensive chips, like those from Nvidia. The success of DeepSeek has potentially turned the tide in the race for supremacy between US tech giants and their artificial-intelligence counterparts in China.
