We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Technology stocks tumbled last Monday, led by a 17% decline in NVIDIA (NVDA - Free Report) shares, as investors weighed the implications of a new AI model released by Chinese start-up DeepSeek. The model has raised concerns about the tens of billions of dollars being spent by U.S. tech giants.
However, some experts believe DeepSeek is using more NVIDIA chips than it has disclosed and is also spending significantly more than reported. Many suspect the company may have leveraged U.S. model outputs to enhance its own models.
Microsoft (MSFT - Free Report) and OpenAI are investigating whether DeepSeek used data from OpenAI’s models without authorization to train its own models via distillation.
While it is too early to assess the full implications, this development could ultimately benefit many companies, particularly AI users. If AI costs decline, leading to its commoditization, we could see more widespread adoption.
Investors have been evaluating potential winners and losers in the wake of DeepSeek’s emergence, leading to some rotation in the technology sector and broader markets.
Companies developing AI applications, as well as those integrating AI into their products and services to enhance productivity—such as software firms, banks, healthcare providers, and industrial companies—could be major beneficiaries as AI becomes more affordable and accessible.
To learn more about the iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report) , and Vanguard Value ETF (VTV - Free Report) , please watch the short video above.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
AI Winners Following the DeepSeek Disruption
Technology stocks tumbled last Monday, led by a 17% decline in NVIDIA (NVDA - Free Report) shares, as investors weighed the implications of a new AI model released by Chinese start-up DeepSeek. The model has raised concerns about the tens of billions of dollars being spent by U.S. tech giants.
However, some experts believe DeepSeek is using more NVIDIA chips than it has disclosed and is also spending significantly more than reported. Many suspect the company may have leveraged U.S. model outputs to enhance its own models.
Microsoft (MSFT - Free Report) and OpenAI are investigating whether DeepSeek used data from OpenAI’s models without authorization to train its own models via distillation.
While it is too early to assess the full implications, this development could ultimately benefit many companies, particularly AI users. If AI costs decline, leading to its commoditization, we could see more widespread adoption.
Investors have been evaluating potential winners and losers in the wake of DeepSeek’s emergence, leading to some rotation in the technology sector and broader markets.
Companies developing AI applications, as well as those integrating AI into their products and services to enhance productivity—such as software firms, banks, healthcare providers, and industrial companies—could be major beneficiaries as AI becomes more affordable and accessible.
To learn more about the iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report) , and Vanguard Value ETF (VTV - Free Report) , please watch the short video above.