Deepseek represented a breakthrough for the AI industry, providing results at the same time with the best Openai model while using significant computer power.
The implications have been substantial. Nvidia supply Rate about $ 600 million in market value In one day, investors were concerned with the future demand of their GPU chips, which are the main source of fuel for models of great language.
Suppose large models of Openai, anthropic and Goal Adopt some of the techniques used for the opening of Deepseek and become more efficient. Will they need as much computer power as initially thought?
From the point of view, AI adopters, in particular software companies, were the possibility that the cost of AI technologies would decrease significantly, leading to higher benefit margins.
But there are even wider lessons than investors can take from the week Black swan eventAnd they affect everything, from good to actions and even crypto.
According to Goldman Sachs, the five main stocks of the S&P 500 accounted for about 29% of the index on December 31, and are highly exposed to similar technological trends.
“Concentration in various names is a concern when the engines of success are the same for most names,” Business Insider told Chris Fasciano, Commonwealth Financial Network market strategist.
The concentration is a double cut sword. It can work very well in the oxen markets, but a simple interruption for the general story of investors could lead to a painful decline, as seen on Monday, when the Follow -up of index Mega-Cap Tech shares caused 3%, compared to a slight gain for the equal weighting S&P 500.
The concentration speaks of the idea that investors may not be as diversified as they believe.
“This is a little appreciated consideration,” he told Bi Steve Sosnick, no strategist of interactive runners.
“It is common and understandable that investors believe that they are properly diversified when they buy a fund linked to S&P 500,” said Sosnick, but this is not the case based on extreme concentration levels.
“Those seeking true diversification must look beyond SPX,” Sosnick said, adding that Nasdaq is not the answer, with a good handful of stocks representing about half of this index.
Nvidia has dominated the story of AI since the Chatgpt was published in November 2022, as Became the “Picks and Shovel” provider to companies that develop their own large language models.
But Monday’s price action revealed that there are second -time AI trade -derivative beneficiaries, which includes AI technology adopters such as software companies.
If Deepseek’s claims to use less computer power are accurate, which means that costs should be significantly reduced to AI adopters, increasing the highest benefit margins.
Among the winners of the software in the middle of Monday’s blood there were Sales forcewhich won up to 10% while the market was reduced.
“If DeepSeek has really shown us that an open source solution is much less depending on the resources than the Chatgpt paradigm, the advantages of the IA can be easier to get from companies that do not want or cannot afford to be associated With one of the current companies, this dominates the arena, “said Sosnick.
Crypto’s volatility was on full display this week, although Deepseek seemed to mainly affect technological companies.
Bitcoin fell up to 7%, together with the strong decrease with the NASDAQ 100.
The highlights of the sale that cryptocurrencies are highly correlated with movements in the broadest technological space and, absent, any specific catalyst for crypto, Bitcoin is a high octan bet
“Safe paradises do not have an average daily volatility of 2%,” said Sosnick. “Over the past 6 months, the correlation of Bitcoin and NDX prices is approximately 80%.”
Apple Actions increased the sale of Deepseek, increasing about 8% a week, as investors determined that the company’s decision to spend tens of billions of dollars on the creation of their own model of great language It was good.
Instead, Apple focuses on taking advantage of the Chatgpt AI model and using EDGE computer science to deliver fast answers to iPhone users. This edge computer is key, as it could become even more ubiquitous if the AI models see a decrease in their calculation consumption thanks to the advances identified by Deepseek.
And a decrease in calculation consumption is ultimately a decrease in costs, which could feed even more rewards and dividends for the company.
“The IA AI means much more capital to return to shareholders, either in the form of dividends or actions rewards. All large US technology companies except Amazon, there are both. , he said in a note this week.
If Deepseek’s open source model offers the cost savings planned for other large language models, it could be a higher efficiency and lower costs.
According to Tech’s Officer Directors, such as Microsoft’s SATYA NADELLA, BARATE MODELS MUST SHOULD ACCEPT FROM THE APPPLICATION OF THE AI AT DIFFERENT INDUSTRIES AND DRIVING TO A Suggest productivity.
If this happens, economic growth could continue without a rebound of inflation, which would put interest rates in a downward trend.
“If Deepseek processes show that the AI revolution can be achieved at a lower cost and with lower energy consumption, this would be good for macro conditions (such as productivity and inflation),” he wrote The LPL Cap Strateg, Jeff Buchbinder, this week. “In theory, this would help reduce the Fed’s neutral rate a touch and maintain lower interest rates than those that would otherwise be if the AI spending continued without restrictions.”
The lowest interest rates mean that the highest prices of the bonds, causing a potential manifestation in a class of assets that was injured by the Fed rates in 2022 and 2023.
“The AI equal can and should increase productivity throughout the economy and, therefore, have benefits for price levels and interest rates,” Sosnick said, although he warned that this result “does not” will pass immediately. ”
Fresh turbulence for Spicejet: The airline reached 12.68 million dollars of insolvency claimed as 3 landlords, former Pilot Mour NCLT
Spicejet faces renewed financial problems as three Ireland -based plans, and a former pilot has filed insolvency requests against the budget carrier in the Company National Law Court (NCLT), citing…
itstargetnews
