From Financial Modeling Prep: 2025-01-28 05:36:21

Chinese AI startup DeepSeek has disrupted tech markets with its cost-efficient AI model, R1, compatible with older chips, raising concerns for established players like Nvidia. Market impact: Nasdaq 100 Futures down 3.1%, S&P 500 Futures fell 1.9%, European tech stocks declined over 10%, VIX spiked.

Analysts predict DeepSeek’s tech could reduce AI training costs, but U.S. hyperscalers may maintain GPU advantage. Meta Platforms’ capex focus on large-scale GPU clusters aligns with this trend, emphasizing the need for high-performance AI infrastructure.

DeepSeek’s innovation could drive growth in AI inferencing, benefiting chipmakers like Nvidia. Implications include democratizing AI with lower costs, sustaining semiconductor demand for advanced chips, and boosting investment in European semiconductor equipment.

Investors can use Advanced DCF API for long-term cash flow projections on Nvidia and ASML, and Financial Growth API for insights into semiconductor and AI sector trends. DeepSeek’s innovation presents opportunities and challenges in the evolving AI landscape.



Read more at Financial Modeling Prep:: DeepSeek Disrupts Global AI Market, Challenges U.S…