DeepSeek: Wake-Up Call or “Golden Opportunity”?

DeepSeek: Wake-Up Call or “Golden Opportunity”?

The release of DeepSeek’s new artificial intelligence (AI) model prompted a range of hot takes. President Donald Trump said it was “a wake-up call” for the US tech industry, while former Intel [INTC] CEO Pat Gelsinger said on X that “markets are getting it wrong”, and that making AI cheaper will ensure it is more “broadly deployed”. Lastly, according to Seeking Alpha, analysts are seeing the selloff as a “golden buying opportunity”.

“It’s Legit Invigorating”: OpenAI’s Altman 

For his part, Sam Altman, CEO of the Microsoft-backed [MSFT] start-up, wrote on X that DeepSeek’s model was “impressive, particularly around what they’re able to deliver for the price” and that the release will drive OpenAI to “deliver much better models”. Underscoring Pat Gelsinger’s prediction that DeepSeek “will help reset the increasingly closed world” of AI, Altman added: “it’s legit invigorating to have a new competitor!”

Tesla Goes Toe-to-Toe with EU

The electric vehicle (EV) maker [TSLA] is suing the EU over its tariffs on vehicles imported from China. The case was filed by Tesla’s Shanghai subsidiary; the firm accounted for 28% of Chinese-made EVs imported into the bloc in 2023, the Financial Times reported, more than any other brand. “We’re prepared to defend our case in court as necessary,” European Commission trade spokesperson Olof Gill said.

What’s the Outlook on These 3 Chip Stocks?

Following Donald Trump’s return to the White House, the chip industry is concerned. During his election campaign in October, Trump told podcaster Joe Rogan that subsidies offered to semiconductor companies through the CHIPS and Science Act were “so bad”. Another problem faced by the sector is a slow market recovery. On Foresight, OPTO unpacks the investment case for three chip stocks well-placed to ride out any headwinds. 

SAP Earnings: AI Pivot Pays Off 

Europe’s biggest tech stock [SAP] reported Q4 cloud sales of €4.71bn, slightly beating estimates of €4.68bn. Cloud revenue grew 27% year-over-year, Bloomberg reported, driven by AI capabilities that attracted customers to its offerings. SAP also announced new executives and plans to streamline its strategy. Its AI services are incentivizing a shift from legacy servers to the cloud, boosting average client spending. 

Bitfarms Offloads Paraguay Site

Bitfarms [BITF] has agreed to sell its 200MW site in Paraguay to HIVE Digital Technologies [HIVE] for some $85m, Seeking Alpha detailed. The deal, expected to close in Q1 2025, supports Bitfarms’ shift towards North America, reducing power costs by 10% and focusing on Bitcoin mining and HPC/AI infrastructure. This move also aligns with its strategy to rebalance energy operations, with 80% in North America by the end of 2025.

Earnings Preview: Social Media Stocks

TikTok has been given a 75-day reprieve to continue operating in the US, during which time it will need to find a buyer. TikTok’s future in the US is not guaranteed, however, and this uncertainty could create opportunities for social media stocks. Ahead of a flurry of earnings calls, OPTO breaks down how social media companies are looking to benefit from a potential TikTok sale.