DeepSeek's new AI model disrupts market, impacting Nvidia, Vertiv, and Vistra

From Zacks Investment Research: 2025-01-27 14:20:27

Over the weekend, a Chinese AI company, DeepSeek, introduced a powerful large-language model (LLM) that is open-source and cost-effective, causing market volatility in leading AI stocks like Nvidia, Vertiv, and Vistra.

DeepSeek’s innovative approach using FP8 numbers instead of 32-bit precision may disrupt the demand for Nvidia data center products but likely won’t spell the end for Nvidia. Energy and data center service providers like Vertiv, Vistra, and Constellation Energy Corporation could also face challenges as AI systems become more efficient.

In this turbulent market, healthcare stock DaVita shines with a Zacks Rank #1, strong price momentum, and attractive valuation, making it a smart defensive play for investors seeking stability amidst AI sector uncertainty.



Read more at Zacks Investment Research: Sell Nvidia, Buy This Stock – January 27, 2025