HiddenAI stock set to be a rally amid Deepseek breakthrough, analysts predict
Last week, concerns over guidance for grand capital investments and record-breaking capital investment plans focused on seven grand trades last week.
Roundhill Magnificent Seven ETF (magazine) This has been down 2.4% over the past five days led by Alphabet’s.Goog, googl) A decline of 9.2% and Amazon’s 3.6% decrease.
And that’s the latest headwind for the group. The tech sector has recovered from a DeepSeek-led sale last month after investors panicked at the horrors of cheaper, open source, massive language models.
However, Deepseek’s development should be viewed as an industry catalyst, not a headwind, according to top CEOs and industry experts. One Openai employee told me that the market should consider Deepseek’s development a “winner” given the potential to accelerate AI innovation and recruitment.
“Deepseek’s R1 model is a breakthrough… To be excited about advances in science is something we all want, and to see the cost of important resources drops.” market.
And that sentiment is reflected by the CEOs of major high-tech companies. Alphabet CEO Sundar Pichai described his company’s work as “rich” and “rich” in his company’s revenue call earlier this week (Meta)Meta) CEO Mark Zuckerberg said there is a “number of novelty” that Deepseek said the company is “still digesting.”
For investors looking to acquire cash at the next stage of AI growth, it may be time to look beyond hyperschools and chip makers like Nvidia.NVDA) and amd (AMD).
Play: AI Network Stocks – A group that provides infrastructure for AI applications.
Here’s why: AI models like DeepSeek’s R1 will only grow the need for high-speed networking solutions, as they will significantly increase computational demand. Bank of America’s Jang Chung wrote a note to his client this week.
T.Row Price Science and Technology Equity Strategy Portfolio Manager Tony Wang told me He considers the group “good placement,” but Stifel’s Ruben Roy sees a rise, citing Deepseek’s R1 model as a driver of global demand for robust, fast networking infrastructure. It’s there.
“There’s no doubt that the networking aspect is a bottleneck in terms of providing AI infrastructure,” Wang told me. “We need to see more innovations in that layer.
Roy looks at Siena (hundred), it made sense (call), and Celesta (CLS) As the best beneficiary of “making AI workloads more efficient.”
“The piping that underlie moving data will be more difficult to implement… Interface speeds are moving higher, and the challenges moving data can continue to become more complicated,” Roy said. explained.
