The recent surge of DeepSeek seems to be causing anxiety among investors. Today, stocks of companies related to the chip business in Japan, such as Advantest, which manufactures testing equipment for NVIDIA, dropped by 8%, while Disco Corporation, a producer of tools for chip manufacturers, saw a 2% decrease.
SoftBank, which announced an investment in the Stargate project to establish an AI data center in the United States, experienced an 8% decline in stock prices. Furukawa Electric, a cable manufacturer for data centers, also faced an 11% decrease.
Masayuki Murata, a fund manager at Sumitomo Life Insurance, commented on the stock prices, indicating that major tech companies are heavily investing in AI technology. This raises questions about whether this investment will yield worthwhile returns compared to the amount invested.
Andrew Jackson, the head of strategy at Ortus Advisors in Japan, believes that the stock market is reacting positively to the news of DeepSeek potentially creating a competitive AI model using significantly lower costs than renowned models worldwide. This development may require further validation.
TLDR: DeepSeek’s impact on the stock market has instilled worry among investors in Japan, with fluctuations observed in related companies’ stock prices. Industry experts are intrigued by the potential of DeepSeek to develop cost-effective AI models that can rival established global counterparts.
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