Investing Experts DeepSeek isn't new, Nvidia concerns, downgrading AMD + 3 semi caps
Feb 13, 2025
Sara Awad, an analyst at Tech Stock Pros and leader of Tech Contrarians, dives into the shifting landscape of the semiconductor market. She analyzes the implications of DeepSeek on giants like Nvidia and AMD's recent downgrade. Awad discusses Palantir's performance and the fundamentals driving stocks versus market hype. She emphasizes the importance of understanding supply and demand in current investment strategies, offering insights into three promising semiconductor companies amidst geopolitical challenges.
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DeepSeek Misinformation
- DeepSeek, a Chinese AI model, is not new, but misinformation about its cost and capabilities caused a market sell-off.
- This misinformation led investors to believe DeepSeek achieved comparable performance to OpenAI at a significantly lower cost, sparking fears of reduced computing power needs.
Nvidia's Short-Term Safety vs. Long-Term Risk
- Nvidia is likely safe short-term due to the current demand and shortage of its Blackwell series GPUs.
- However, DeepSeek's potential to lower AI infrastructure costs poses a long-term threat to Nvidia's growth.
Palantir's Risky Valuation
- Palantir's recent surge is partly due to its data analytics capabilities in the AI boom, but its valuation is concerning.
- DeepSeek's lower barrier to entry poses a threat to Palantir's commercial revenues, making its high valuation risky.