Deepseek represents a boom in the artificial intelligence industry, as it achieved equal results with the best model of Openai with a much lower computing power.
Suppose the large language models are from Openaii, Noteropic, and Dead Adopting some of the technologies used by open source Deepseek and become more efficient. Will they need a lot of computing power as he initially believed?
On the other hand, Amnesty International, especially software companies, increased the cost of artificial intelligence technologies significantly, leading to high profit margins.
But there are even broader lessons that investors can take from this week Black swan occurredAnd it affects everything from bonds to arrows to encryption.
According to Goldman SACHS data, the first five stocks in the S&P 500 constitute about 29 % of the index as of December 31, all of which are very vulnerable to similar technology trends.
“Focusing in many big names is a source of concern when success engines are the same for most names,” said Chris Favors, the chief market strategy in the Commonwealth Financial Network, for Business Insider.
Focus is a double -edged sword. It can work wonderfully in the bull market, but it may cause a slight disruption to the list of comprehensive investors to a painful decrease, as we saw on Monday, when Feel the index Great technology shares decreased 3 %, compared to a slight increase in equal S&P 500.
The focus talks about the idea that investors may not be varied as they think.
“This is not prohibited,” Steve Sosnik, chief strategic expert in interactive intermediaries, told Bi.
“It is common-and the concept-that investors believe that they are sufficiently varied when they buy a backed s & P 500,” said Sosnik.
“Those who are looking for real diversification need to look beyond SPX,” Sosnik said, adding that Nasdak is not the solution, as a group of arrows forms about half of this index.
NVIDIA has controlled the story of artificial intelligence since the ChatgPt release in November 2022, Transfer into a “options and shovels” supplier For companies that develop their large language models.
However, the price of Monday revealed that there are beneficiaries of the second statues of the artificial intelligence trade, which includes adopting artificial intelligence techniques such as software companies.
If Deepseek claims with a minimal computing power, this means that the costs should significantly decrease for artificial intelligence adopters, pushing the profit margins up.
Among the software winners in the center of the bloodbath on Monday SalesforceWhich gained up to 10 % while the market was wandering.
“If Deepseek really shows us that the solution is open source less dependent on the resource of the Chatgpt model, it may be easier to reap the benefits of artificial intelligence and Sosnik said:” This is currently dominating the arena. “
The encryption fluctuation was fully displayed this week, although Deepseek seems mainly affecting technology companies.
Bitcoin decreased by 7 %, along with a sharp drop with Nasdak 100.
The most prominent sales operations are that cryptocurrencies are closely related to the broader technology movements, and are absent from any encryption stimuli. Bitcoin is a high octane bet on the continuous performance of Tech Technology
“You do not have the safe havens of 2 % a day,” Sosnik said. “Over the past six months, bitcoin and NDX levels are linked to about 80 %.”
apple Stock Counted sold Deepseek, where about 8 % increased a week as investors decided that the company’s decision not to spend tens of billions of dollars to build a large linguistic model was good.
Instead, Apple focuses on taking a ChatGPT AI and using Edge Computing to provide quick answers to iPhone users. This edge computing is the key, as it can become more everywhere if the artificial intelligence models see a decrease in its account consumption thanks to the breakthroughs set by Deepseek.
Consumption has decreased to an account, which eventually means a decrease in costs, which may increase more shares and profit distributions to the company.
“Cheap artificial intelligence means a lot of capital to return to shareholders, either in the form of profits or re -purchases of shares. Every large technical company in the United States with the exception of Amazon already both. Now they can get a lot, much larger,” Nicholas Collas, Co -founder of DATATREK Research, said in a note this week.
If an open source Deepseek model provides savings in the expected costs of other large language models, this may eventually mean higher efficiency and lower costs.
According to technology executives, such as Microsoft Satia Nadella, cheap artificial intelligence models must increase the adoption of artificial intelligence across various industries and lead to Increase in productivity.
If this happens, economic growth may continue without provoking an enlarged recovery, which will restore interest rates in a declining direction.
“If Deepseek operations show that the artificial intelligence revolution can be achieved at a lower cost and with low energy use, it will be good for total conditions (such as productivity and inflation) to move forward,” says Jeff Boukinder, the chief strategy in LPL this week. “In theory, this would help reduce the rate of the neutral Federal Reserve and maintain interest rates less than it was if the great artificial intelligence continues to be relentlessly.”
Low interest rates means high prices of bonds, which provokes a potential crowd in the class of assets, which has increased the federal reserve rate in 2022 and 2023.
“More artificial intelligence can equal and should enhance productivity throughout the economy and therefore it has benefits for price levels and interest rates,” Sosnik said, although he warned that such a result “will not happen immediately.”
