Earnings Mastery
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
Earnings Mastery
No Result
View All Result
Home Investing

Has DeepSeek really lowered compute demand in 2025?

March 31, 2025
in Investing
Has DeepSeek really lowered compute demand in 2025?
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

AI stocks have been hammered in recent weeks, part of which is related to the macro headwinds, but some of it, at least, is due to concerns of an AI slowdown ahead.

But recent data continues to dismiss such fears as inflated. In fact, if anything, the demand for compute has only gone up in 2025, according to a senior Bernstein analyst, Stacy Rasgon.

“The only ones that seem worried about it are the investors. The companies that are actually doing the spending, it seems like it’s full steam ahead,” he argued in a CNBC interview last week.  

DeepSeek is driving demand for compute

Part of the reason why investors are questioning if 2026 could still be a growth year for artificial intelligence is DeepSeek.

The Chinese startup rolled out an AI model in February that it claimed required significantly less computational resources to achieve results comparable to ChatGPT.

However, demand for compute has only gone up since DeepSeek’s launch, Rasgon added.

We’ve seen CAPEX numbers go up. We’ve head stories of GPU shortages as they’re starting to deploy this stuff.

It does actually look like it’s driving demand, not curtailing it.

Still, the iShares Future AI & Tech ETF is currently down nearly 25% versus mid-February.

Nvidia continues to see strong demand ahead

Nvidia chief executive Jensen Huang echoed a similar view at the annual GTC event this month.

In his keynote speech, the industry veteran said DeepSeek’s R1, while efficient, is a reasoning model that actually requires 100 times more computational power than non-reasoning AI models.

This was contrary to initial market assumptions that DeepSeek’s advancements would reduce overall compute demand.

“I’m of the belief that cost reduction, in general, is good – it drives demand. That’s been true in semiconductors over the course of five or six decades.” Rasgon told CNBC last week.

Bernstein’s view on Nvidia stock for 2025

Rasgon’s belief that concerns of an AI slowdown are, in fact, overblown keeps him bullish on the sector darling, Nvidia Corp (NASDAQ: NVDA).

His outperform rating on the artificial intelligence chips giant is coupled with a price target of $185, which indicates potential for a nearly 70% upside from current levels.

The Bernstein analyst agreed that semiconductor stocks tend not to do well during a recession, but added:

Some of the spending on AI, particularly related to productivity savings and cost reductions, and things like that may prove more resilient in a recession than discretionary spending.

Nvidia itself guided for continued momentum ahead in February.

For Q1, the AI chips behemoth expects $43 billion in revenue, which translates to about a 65% year-on-year increase. Analysts, in comparison, were at $41.78 billion only.

The post Has DeepSeek really lowered compute demand in 2025? appeared first on Invezz

Previous Post

Top reasons why Alibaba stock price is about to explode higher

Next Post

Aston Martin raises £125 million amid US tariff fears, China slowdown

Next Post
Aston Martin raises £125 million amid US tariff fears, China slowdown

Aston Martin raises £125 million amid US tariff fears, China slowdown

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    SPYI ETF: Is this 12% yielding JEPI rival a good fund to buy?

    June 5, 2025
    Citigroup to cut 3,500 technology jobs in China as part of global revamp

    Citigroup to cut 3,500 technology jobs in China as part of global revamp

    June 5, 2025
    EU watchdog accuses Shein of ‘dark’ practices to ‘nag’ and ‘shame’ consumers into buying more

    EU watchdog accuses Shein of ‘dark’ practices to ‘nag’ and ‘shame’ consumers into buying more

    June 5, 2025
    European markets open: Stoxx 600 gains ahead of anticipated ECB rate cut

    European markets open: Stoxx 600 gains ahead of anticipated ECB rate cut

    June 5, 2025
    Laopu Gold’s HK$1,000 share price tests rally as valuation, access concerns mount

    Laopu Gold’s HK$1,000 share price tests rally as valuation, access concerns mount

    June 5, 2025
    India’s energy transition accelerates as coal declines and renewables surge

    India’s energy transition accelerates as coal declines and renewables surge

    June 5, 2025

    Disclaimer: EarningsMastery.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Popular

    Warren Buffett stepping down: analysts assess what it means for Berkshire stock and investors

    Warren Buffett stepping down: analysts assess what it means for Berkshire stock and investors

    May 6, 2025

    Latest

    SPYI ETF: Is this 12% yielding JEPI rival a good fund to buy?

    June 5, 2025
    Citigroup to cut 3,500 technology jobs in China as part of global revamp

    Citigroup to cut 3,500 technology jobs in China as part of global revamp

    June 5, 2025
    EU watchdog accuses Shein of ‘dark’ practices to ‘nag’ and ‘shame’ consumers into buying more

    EU watchdog accuses Shein of ‘dark’ practices to ‘nag’ and ‘shame’ consumers into buying more

    June 5, 2025
    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 earningsmastery.com | All Rights Reserved

    No Result
    View All Result
    • Politics
    • Business
    • Investing
    • World

    Copyright © 2025 earningsmastery.com | All Rights Reserved