The introduction of Chinese artificial intelligence applications was rippling throughout the technology market, and it was particularly difficult to hit AI-Chip leader NVIDIA.
DeepSeek App developers claim that the performance of its flagship AI model R1 is almost as expensive models like Openai, but the cost is much less.
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OPENAI CEO Sam Altman said on X that the new models are impressive, especially in terms of price delivery. ”
China’s artificial intelligence model uses NVIDIA H800, which is a chip used by the major architects that use large language models than processors.
The introduction of DeepSeek has caused the stocks of the main AI players led by chip manufacturer NVIDIA (NVDA. Because it may seriously compress the demand for NVIDIA’s expensive AI chips, it is essential for its business.
Related: The fund manager who predicts NVIDIA sells boldly
This may also cause investors to question whether it should continue to carry out large -scale AI expenditure plans for major technology companies (such as Microsoft, Amazon, Alphabet and Yuan), which is expected to only be 300 billion U.S. dollars in 2025.
After DeepSeek’s revelation, Nasdaq fell 3 % on January 27, and NVIDIA fell 17 %.
But what about Amazon? It has almost no germination. During the cruel selling on Monday, the stock actually rose by 0.24 %.
Kevin Winter & Sol; Getty Images
Senior traders are selling Amazon shares
Amazon (Amzn. In 2024, this number is 44 %, mainly by the growth of Amazon Web Services (the growth of its cloud computing department).
The company is building it is a cheap alternative to NVIDIA equipment.
AWS’s operating income in the third quarter of 2024 was $ 10.4 billion, an increase of about 50 % from US $ 7 billion in the third quarter of 2023. The latest numbers account for about 60 % of Amazon’s total operating income this quarter.
Related: Analysts improved Amazon’s stock price target after the AWS AI update
Amazon plans to report the income in the fourth quarter in the fourth quarter of February 6.
Chris Versace, a senior person in Wall Street, occupied 9 % of Amazon’s investment portfolio this week, $ 238.22 per share. Amazon is now 4 % of the investment portfolio.
He explained: “Because the short -term standards of standards have pointed out an excessive market, we will ring the registration book and lock some obvious returns.” As the lowest point in the market in August 2024, Amazon’s stock price rose 50 % by 50 % Essence
Versace’s career began in the 1990s. He first purchased Amazon shares in the investment portfolio in 2018 and added six times in the latest purchase in August 2024.
His average income to Amazon’s shares was about 148 %.
Even after the sales scope is still optimistic about Amazon’s stock.
He told thestreet: “It not only adopted through AI, but also made great progress in advertising business.” “The advertising business is a high profit margin for them, and they have expanded it to Prime video and shopping website.”
Analysts watched Amazon’s stock up after DeepSeek
Wedbush’s analyst Daniel Ives reiterated confidence in AI stocks, saying that selling is “opportunity to buy”.
Afs said in a research report: “There is nothing to do with Deepseek to make us believe in anything different.”
He added: “These are just opportunities for NVINIA, Microsoft, Alphabet, Palantir, Salesforce, Amazon and a wider technical ecosystem.”
Wedbush has raised its price target at Amazon from $ 260 to $ 280, and its rating is better than the fourth quarter earning report.
“We are constructive in the settings before the report, and have spent good holidays in the United States, and continuously improved in the core retail business, although in the near future [foreign-exchange] against the wind. “The company said.
Wedbush said that Amazon once again surpassed expectations in 2025, “investors’ profits for 2025 are too conservative.”
TheFly.com reports that OPPENHEIMER analysts also regard Deepseek news as Amazon’s positive signal.
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According to analysts, this is “very positive” for the overall AI ecosystem, because Deepseek’s charges are less than OpenAI fees, which may reduce the cost of inference.
Related: Senior fund manager issued Dire S & P 500 warning 2025
