$NVDA
The DeepSeek sell-off:
Analyst Reactions:
🔸 JPMorgan (Sandeep Deshpande): Suggests the AI investment cycle might be overhyped; DeepSeek's efficiency could lead to a more efficient future.
🔸 Jefferies (Edison Lee): Proposes two strategies post-DeepSeek: continue investing in computing power or focus on efficiency, potentially reducing 2026 AI capex.
Contrasting Views:
🔸 Bernstein (Stacy Rasgon): Believes the panic is overblown; maintains outperform ratings on Nvidia and Broadcom.
🔸 Citi (Atif Malik): Acknowledges a challenge to US dominance but emphasizes the advantage of access to advanced chips, maintaining a buy on Nvidia.
Efficiency and Costs:
🔸 Raymond James (Srini Pajjuri): Suggests that if DeepSeek's innovations are adopted, training costs could decrease, questioning the need for large GPU clusters.
Market Dynamics:
🔸 Cantor (C.J. Muse): Sees DeepSeek's developments as bullish for compute demand, suggesting increased rather than decreased need for GPUs, advocating to buy Nvidia on any dips.
(
@WalterBloomberg)