According to a recent analysis from JPMorgan, Nvidia, whose market capitalization fell by $600 billion in a single day following the release of the Chinese AI chatbot DeepSeek, will actually benefit from the new service.
To evaluate the impact of the new large language model, the investment bank consulted analysts from several businesses.
Regarding Nvidia (NVDA), the business contended that increased computational complexity, novel model innovation, and the growth of applications should all contribute to robust demand for the chips the company manufactures. They claim that because DeepSeek will have a detrimental effect on server CPU demand, it will affect Intel (INTC) while also helping chipmakers Broadcom (AVGO), Marvell Technology (MRVL), and Micron Technology (MU).
The megacap tech behemoths Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META) are all anticipated to benefit, according to the business. “We think that enhanced cost efficiency and model innovations should benefit the larger Internet ecosystem. They said that lower prices should spur the development and uptake of GenAI, leading to higher consumption.
However, the rise of DeepSeek raises the risk of overbuilding on excessively ambitious data-center ambitions, which might affect Oracle (ORCL).
According to the experts, the power firms stand to gain if hyperscalers reiterate their intentions for capital expenditures.
JPMorgan also noted that if DeepSeek accelerates the adoption of AI, healthcare technology companies stand to gain.
Custom Truck One Source (CTOS), Cummins (CMI), and Caterpillar (CAT) may suffer, on the other hand, if facility expansion and power generation are slowed down or postponed.
