DeepSeek: Disrupting the stock market and the AI industry

PUBLISHED Jan 28, 2025, 4:05:28 AM        SHARE

img
imgLouis Engelbert

In December 2024, DeepSeek released its "R1" model which has been known for its enhanced capabilities in mathematics and coding. The model's performance is comparable to OpenAI's offerings but was developed using significantly fewer resources. DeepSeek claims that training the R1 model cost less than $6 million and required only about 2,000 specialized computer chips, specifically Nvidia's H800 series. In contrast, other leading AI companies often utilize supercomputers with over 16,000 chips for similar tasks.

The release of the R1 model current has a significant impact on the tech industry. On January 27, 2025, major U.S. tech stocks, including Nvidia, Microsoft, and Tesla, experienced a combined loss of over $1 trillion in market value. Nvidia's stock alone plunged by up to 18%, marking the largest single-day loss for any public company. To put this in perspective, Nvidia almost lost $500 billion in market value. This market reaction underscores the disruptive potential of DeepSeek's advancements in the AI sector.

Not only that, DeepSeek's success has further highlighted the limitations of U.S. sanctions aimed at restricting China's access to advanced AI technologies. Despite these sanctions, DeepSeek has managed to develop competitive AI models at a fraction of the cost compared to its European and American competitors. Hence, creating discussions about the effectiveness of these export restrictions and the evolving dynamics of global AI competition.



Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
Snap-On Incorporated: A High-Growth Dividend Stock
Image

Snap-On Incorporated (ticker symbol: SNA) is an industrial company specializing in tools and equipment. Known for its impressive growth in earnings per share since 2010, Snap-On has delivered substantial returns in stock price and high-growth dividend payments.

MPLX and TPL: Investment Insights
Image

The energy sector offers a myriad of investment opportunities, but it's crucial to understand the dynamics that influence profitability. In this article, we'll explore different investment strategies within the energy sector, focusing on companies less dependent on the volatile commodity prices of oil and gas.

The Dominance of Nvidia in the AI Semiconductor Industry
Image

Nvidia Corporation, symbol NVDA, is renowned as the most dominant AI semiconductor company today. Their chips serve as the backbone of countless data centers worldwide, solidifying their crucial role in the AI revolution.

Verizon Stock: Navigating the Decline and Dividend Growth
Image

Good day, fellow investors! Verizon stock has been experiencing a downturn over the last five years. Simultaneously, the dividend has been on an upward trajectory. How can this be? This article explores the reasons behind this paradox and calculates Verizon's intrinsic value to help you determine if it fits your portfolio.

Robinhood (HOOD): A Top Stock to Watch This Week
Image

At the top of the watch list this week is Robinhood (ticker symbol: HOOD). We previously highlighted this stock as a significant election beneficiary post-November elections, leading to a substantial upside move, reaching the $43.35 resistance level. Since then, Robinhood has been building a consolidation base for about a month and a half, ranging between $43.35 resistance and $33.95 support.

GE VERNOVA (GEV): A Stock to Watch Closely
Image

In the upcoming week, all eyes are on GE VERNOVA (ticker symbol: GEV). We first highlighted this stock in August due to its well-defined consolidation pattern following its IPO. IPO bases can lead to significant upside moves once they break, and GEV did just that, breaking out from the 180s to the 300s. It is now building a well-defined 2-month long consolidation base, ranging between $319 support and $354.50. A move above $354.50 could trigger another large run.

Super Micro Computer (SMCI): A Critical Technical Decision Point
Image

Super Micro Computer (SMCI) has been experiencing significant volatility and is currently at a crucial technical decision point. Following a large drop and subsequent rally, the stock is now back testing the $35.7 support level, which was the initial breakout trigger that started a massive upward movement at the beginning of 2024.

Eli Lilly and Company's Stock: A Promising Upside for 2025
Image

Eli Lilly's stock has seen a 15% increase over the last year. However, it has experienced some volatility, with a decline over the last month and a 20% drop over the past six months. Despite these short-term fluctuations, Eli Lilly has outperformed the S&P 500, with a 96% increase over the longer term.

A 2025 Opportunity: Uber Technologies
Image

Uber Technologies is a stock we've been bullish on since it hovered around the $60 mark. In the past year, it has seen a 7% increase, and over the last five years, it has surged by approximately 92%.

Top Penny Stocks in the Steel Industry to Watch
Image

Penny stocks in the steel industry offer investors an intriguing opportunity to participate in the growth of this essential sector at a lower entry cost. While these stocks can be volatile, they can also provide substantial returns for those willing to take on the risk.

What is the Future of Steel Stocks?
Image

The steel industry is facing significant challenges, with a steeper-than-expected downward trend that has weakened the recovery forecasted for 2024 and 2025. This downturn is largely driven by poor demand conditions exacerbated by high energy prices, persistent inflation, economic uncertainty, and geopolitical tensions.

The Top Steel Stocks to Buy on the NYSE
Image

When it comes to making solid investments, steel industry stocks have become a hotspot for new investors. In this guide, we’ll uncover the top steel stocks to buy on the New York Stock Exchange (NYSE).

Why Should I Invest in Steel Stocks? Key Insights for New Investors
Image

Steel stocks are a popular investment option for those looking to diversify their portfolio and benefit from the sector’s growth. This widespread demand makes it a vital part of the global economy, offering growth potential. Global consumption of steel is currently estimated at 1.9 billion tons used annually. This persistent demand supports the value and profitability of steel companies.

High-Growth Stocks to Buy: Grab’s Potential Amidst S&P 500 Predictions
Image

Grab is a Southeast Asian technology company known for its diverse range of services, including ride-hailing, food delivery, digital payments, and financial services. Through their app, users can book rides, order food, pay bills, and access various on-demand services. Grab is widely used in countries like Singapore, Indonesia, Malaysia, Thailand, and the Philippines.

Salesforce: A Cloud-Based Powerhouse for CRM Solutions
Image

Salesforce is a cloud-based software company renowned for its customer relationship management (CRM) solutions. Their platform provides tools for sales, marketing, customer service, and analytics, helping businesses manage customer interactions efficiently. Additionally, Salesforce offers a range of cloud services, including AI automation and data management solutions, focusing on innovation to build stronger customer relationships. Serving businesses of all sizes across various industries, Salesforce is a leader in its field.

S&P Global - Quality Stocks to Buy Amid High Valuations
Image

S&P Global offers financial information, analytics, and credit ratings, helping businesses, investors, and governments make informed decisions. Their services cover a broad range of sectors including finance, economics, and strategic decision-making worldwide.

$APP Building a Moat
Image

Applovin Corp is a mobile ad network, functioning as an auction house for mobile ads. Basically, they help game publishers buy and sell ads. Imagine you are creating a new mobile game and want to monetize it through ads—you would use Applovin Corp for that purpose. On the other hand, if you want to promote your game, you'd use a different part of Applovin Corp to place your ads.

Introduction to Pagsiguro (PagBank)
Image

As of December 11th, Pagsiguro's stock price has hit a support level of around **$7**. This level was previously tested back in October last year. According to technical analysis, support levels tend to attract buying interest, as investors who missed out last time will buy if the price dips again. Additionally, support levels often act as psychological barriers where the price bounces back, creating a self-fulfilling prophecy.

Analyzing Portfolio Performance: Best and Worst Performers
Image

Here's an overview of the current holdings, courtesy of SoFi, with more detailed screenshots posted on our Discord. For simplicity, we'll use custom charts here to visualize the information. Currently, seven stocks make up over half of the entire portfolio:

Unveiling the Potential of HIMS: A Super Gem in the Stock Market
Image

I still find this stock dirt cheap, especially now that we trended back towards 25 bucks. This is a stock that peaked at around 34, and I find it just as compelling as in 2024. I think we're going to have a wonderful 2025. This is my first coverage of HIMS for 2025, so let's dive in!

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Financial Literacy Leaders
user_profile
Wise Intelligent
user_profile
Tom Hamilton
user_profile
Mark Robertson
user_profile
Kevin Matthews II
user_profile
Akeiva Ellis
user_profile
Brendan Dale
user_profile
Kenneth Chavis IV
user_profile
Sharita Humphrey