American Nvidia Corp., which saw its market capitalization drop by approximately $600 billion in a single session due to DeepSeek, is expected to benefit from the new AI model developed by the Chinese company, according to JPMorgan. The bank highlights that the increasing complexity of computations, technological innovations, and the rising popularity of applications should significantly stimulate demand for Nvidia chips, as reported by Interfax-Kazakhstan.
Among chipmakers, Broadcom, Marvell Technology, and Micron Technology are also likely to benefit, but Intel Corp. will suffer due to the negative impact on the procurement of server central processors, as stated in the JPMorgan report referenced by MarketWatch. Additionally, DeepSeek is expected to have a positive effect on Meta, Amazon.com Inc., and Alphabet Inc.
“We believe that the internet ecosystem in a broad sense should benefit from the development of models and increased cost efficiency,” the bank notes. “Cost reductions should lead to faster development and implementation of generative AI and, consequently, increased consumption.”
Meanwhile, energy companies are likely to gain from the investment programs of data center operators, and for companies in the healthcare technology sector, the acceleration of AI implementation could become a positive factor.
Conversely, Caterpillar, Cummins Inc., and Custom Truck One Source may be adversely affected by delays in infrastructure construction and a decrease in electricity consumption.
On January 27, Nvidia's market value plummeted by 17% amid concerns about demand for its latest processors following the release of DeepSeek's R1 model, which is comparable to OpenAI's developments but requires significantly fewer hardware resources. DeepSeek utilized "trimmed" versions of Nvidia chips for the Chinese market, which were affected by U.S. export restrictions during its creation.
Earlier, OpenAI stated that it possesses data indicating the use of its models by the Chinese AI startup DeepSeek for training its own. Meanwhile, American Nvidia Corp. considers DeepSeek's new R1 model to be an excellent AI development.