Market Volatility from China’s DeepSeek AI Model May Be Over, But Ramifications for Certain Stocks Remain
The market volatility caused by China’s DeepSeek AI model last month may be subsiding, but the impact on certain stocks could be significant. Mega-cap technology companies have committed to their massive AI spending plans, which could lead to a shift in the way Western companies adopt new training methodologies unearthed by DeepSeek.
JPMorgan has identified several stocks that could be potential losers from the stock market’s DeepSeek AI trade. The bank’s analysis suggests that Western companies could adopt more efficient and less power-hungry large language models, leading to reduced training and inference costs.
This could lead to a balancing act between the decreased need for large-scale investment in current applications and the rapid propagation of new technologies. As a result, certain stocks may struggle to keep up with the changing landscape.
The potential losers from the stock market’s DeepSeek AI trade include companies like Amphenol and Caterpillar, which could be impacted by the shift towards more efficient and less power-hungry large language models.
