When the fleas are broken, it is time to go up the bet.
It has been said that frightened money never wins, but the technological sector was afraid of a dozen horror films on January 27 when the Chinese chatbot Deepseek came on the stage like this nasty little creature of ‘Alien.
Semiconductor companies have taken a naughty saber tooth while Deepseek manufacturers said they had developed a wide linguistic model system for less than $ 6 million, a cost fraction born by the American giants such as Openai and Meta Platforms (Meta)) With performance references that are equal or better than those of the main chatbots.
The AI ​​assistant of Deepseek quickly became the most downloaded free application in the United States on Apple’s (Aapl)) App Store, dethroning the Openai Chatppt.
“The introduction of the Deepseek application was a shot through the arc for all the players of the AI ​​space”, ” Penn Mutual Asset Management said. “While many details surrounding its R1 model remain disorders and most likely exaggerated, it is clear that there is a kind of arms race in the AI ​​space.”
But now is the time to panic, Morgan Stanley analysts said on February 6.
The firm concluded that the in -depth Seloff is an opportunity to purchase and maintained NVIDIA as a “higher choice” with an overweight note and a price target of $ 152 on actions.
While Morgan Acknowledged That Deepseek Creates Some Headwinds Around Export Controls and Longer-Term Investment and that feeling on nvidia haswed spuntial alder -ter-term risks, the firm Said that near-term checks are firming booth for the company’s hopper and ” Blackwell.
Speaking of contacts in the cloud, the firm said it heard that “none of this changes the plans of the main participants”.
Morgan said that the visibility of Blackwell’s supply continues to build and that customers’ desire to spend is “clearly exposed”.
Meanwhile, Citi lowered the company’s price target on Nvidia at $ 163, against $ 175 and maintained a purchase rating on shares before the company’s quarterly report on February 26.
The firm said it models online results for the quarters of January and April and estimates that expectations are $ 38 billion to $ 42.5 billion for quarters, respectively, taking into account the indications of The supply chain so that the Blackwell accumulates more significantly in the middle of 2025 with with a little mixture moves between GB200 / 300.
While noting that the stock has been linked to the beach since June 2024 due to the drop in raw margins, Citi said that it expects the raw margins of Nvidia to have repercussions during the April quarter.
Nvidia’s actions have obtained a boost when the legislators presented a bill which would prohibit the request for a Deepseek chatbot from devices belonging to the government concerning new security concerns that the application could provide information on Users in the Chinese government.
The Bipartite bill – written by representatives. Darin Lahood, a Republican of Illinois, and Josh Gottheimer, a Democrat in New Jersey – is similar to the previous legislation that has prohibited the tiktok of government devices, the devices Wall Street Journal reported.
Both are the best Republicans and Democrats respectively on a sub-comity of the Chamber’s intelligence committee.
“This should be obvious in terms of actions that we should take immediately to prevent our enemy from obtaining information from our government,” said Gottheimer.
The Chatbot application has intentionally hidden a code that could send user connection information to China Mobile, a telecommunications company prohibited to interpret in the United States, according to an analysis by Ivan Tsarynny, Managing Director of Feroot Security.
“Our personal information is sent to China, there is no denial and the Deepseek tool collects everything that American users connect,” Tsarynny told the newspaper.
Related: Nvidia Stock faces new concerns in China
The analysis pushed Lahood and Gottheimer to develop legislation.
“In no case can we allow a PCC company to obtain data sensitive to government or personal data,” said Lahood, referring to the Chinese Communist Party.
Some federal agencies, such as the US Navy and the National Aeronautics and Space Administration, have blocked the application due to security and confidentiality problems.
Texas was the first state in America to prohibit chatbot on government devices, but it is not only the United States that seek Seix deeply.
The governments of Asia, notably South Korea and Australia, restrict their use of the artificial intelligence services of Deepseek due to security problems, Nikkei Asia reported.
The Australian Ministry of Internal Affairs has prohibited Deepseek from government services, saying that it was “an unacceptable level of security risk”.
The ministry said that government entities were to manage the risk of Deepseek’s “vast collection of data” and “exposure of these data to the extrajudicial repertoire of a foreign government which is conflict with Australian law”.
“Chinese electric vehicles, security cameras, Tiktok and now Deepseek show that we are playing Whack-A-Mole with new high-risk nations products and services,” said an Australian company manager cybersecurity.
Italy took similar measures last month.
Industry analysts postponed low cost complaints from Deepseek, Reuters reportedWith Stacy Rasgon de Bernstein declaring that “it seems to be an effort to think that the innovations deployed by Deepseek are completely unknown by the leading researchers of the other many Laboratories of AI of the world.”
Penn Mutual said that Deepseek’s arrival does not seem to have changed the plans for American technological companies to spend hundreds of billions of dollars in AI infrastructure in the coming years.
Microsoft (Msft)) Meta, alphabet (Googl)) and Amazon (Amzn)) represents $ 170 billion in CAPEX expenses – mainly for IA infrastructure until the third quarter of 2024, up 56% compared to a year ago.
AI expenses should exceed a quarter of a billion dollars in 2025, said the firm, and this number will probably be exceeded,
“The great players of technology are continuously looking for ways to optimize their models – and it is perhaps the upheaval that was necessary for them to remain vigilant in their quest to achieve efficiency – realizing that if they Do not find these efficiency, someone else will, “said Penn Mutual.
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