From Nasdaq: 2025-02-15 09:05:00

Chinese AI company DeepSeek’s model rivals North American counterparts at a fraction of the cost, sparking concerns over excessive AI spending. Other tech companies investing billions in AI face uncertainty over ROI. Open-source AI models like DeepSeek’s may level the playing field, intensifying competition in the tech industry.

Tech chatbots like ChatGPT and Microsoft Copilot offer similar capabilities, raising questions about the competitive advantage of AI investments. Microsoft’s Copilot integration with Microsoft 365 aims to boost usage, but concerns over revenue growth persist. The AI market’s potential payoff remains uncertain, impacting investor confidence in AI stocks.

Investors should approach AI stocks cautiously, considering the risk and volatility associated with AI strategies. Companies like Microsoft and Alphabet may thrive long-term regardless of AI success, but short-term performance could fluctuate. The pressure is on for tech giants to prove their AI investments’ worth amid market expectations and uncertainties.

Before investing in Microsoft, consider the Motley Fool’s top 10 stock picks, excluding Microsoft. Stock Advisor offers guidance for building a successful portfolio, with historical returns outperforming the S&P 500. While AI stocks present growth potential, investors should weigh the risks and uncertainties of the ever-changing tech landscape.



Read more at Nasdaq: Why Big Tech May Have a Much Bigger Problem Than Just Cost When It Comes to DeepSeek’s Artificial Intelligence Model