DeepSeek threatens AI firms' strategies but earnings safe for now, broker says
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Jefferies analysts highlight that DeepSeek's new AI model poses strategic challenges for global tech firms, particularly impacting data center builders. However, current earnings remain unaffected.
January 27, 2025 | 2:30 pm
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NVIDIA, a key player in data center technology, may face strategic challenges due to DeepSeek's new AI model, which could pressure its capital expenditure plans.
NVIDIA is a major supplier of data center technology, and DeepSeek's efficient AI model could pressure NVIDIA to justify its capital expenditures. However, Jefferies notes that current earnings are not impacted, suggesting a neutral short-term effect.
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