I. What is DeepSeek?

DeepSeek is a rapidly emerging company in the field of artificial intelligence (AI), renowned for its powerful natural language processing (NLP) technology and deep learning algorithms. It has launched multiple high-performance AI models with broad applications in finance, healthcare, education, and other industries. Its latest model, DeepSeek-V3, demonstrates strong capabilities in text generation, intelligent customer service, and data analysis, ranking highly on several international leaderboards.

DeepSeek’s rise marks another major breakthrough for China’s AI sector, particularly in large model training, AI computing power optimization, and industry application expansion. Its performance is now on par with leading global AI enterprises such as OpenAI, Anthropic, and Google DeepMind. The company’s advancements have not only propelled China’s AI industry forward but have also garnered significant attention from capital markets, reinforcing China’s capabilities in AI-driven innovation.

II. The Impact of DeepSeek: A Milestone for China’s AI

DeepSeek’s success is not just the emergence of an AI company; it represents a milestone in the development of China’s AI ecosystem. Its impact can be analyzed from several perspectives:

1. AI Technological Breakthroughs Driving Industry Development

DeepSeek’s achievements indicate that China has made significant progress in large model training, inference optimization, and AI computing power. Previously, China’s AI capabilities were limited by international supply chains, but DeepSeek’s success suggests that the “computing power bottleneck” is gradually being overcome, which is a major positive signal for the domestic AI industry.

DeepSeek’s models not only excel in text generation but also demonstrate outstanding performance in mathematics, programming, and reasoning. In some key areas, they have even surpassed international benchmarks such as DeepSeek-V3, o1-mini, and Claude-3.5-Sonnet.

2. Strengthening the Domestic AI Ecosystem

DeepSeek’s rise has contributed to the upgrading of China’s AI supply chain. Its models have been adopted by major domestic cloud computing providers such as Alibaba Cloud, Baidu Cloud, and Tencent Cloud. Moreover, top global institutions like Stanford University and the University of California, Berkeley, have begun using DeepSeek’s models for fine-tuning research. This underscores not only DeepSeek’s strong domestic market position but also its global recognition, further enhancing China’s AI influence worldwide.

III. DeepSeek’s Impact on the Investment Sector

DeepSeek’s rise has ignited a new wave of excitement in AI-related stocks, boosting investor confidence in the sector’s future. Its impact on the investment field can be summarized as follows:

1. Revaluation of AI-Related Stocks

DeepSeek’s success has rekindled international investor interest in Chinese AI assets. Since its launch, AI-related stock indices have surged:

China Software Index: +23.10%；CS Artificial Intelligence Index: +14.65%；Robotics Index: +11.88%

Additionally, Appaloosa LP, a major U.S. hedge fund, has significantly increased its holdings in Chinese technology stocks such as Alibaba (+18%), JD.com, and Pinduoduo. This signals that global capital is reassessing the investment value of China’s tech sector.

2. AI Computing Power and Cloud Infrastructure Investment Opportunities

The rapid development of AI models requires powerful computing resources, and DeepSeek’s breakthrough has shifted investor attention toward AI computing power and cloud infrastructure. Key beneficiaries include: Domestic AI chip manufacturers (e.g., Cambricon, Hygon Information), AI server suppliers (e.g., Inspur Information), Cloud computing giants (e.g., Alibaba Cloud, Huawei Cloud, Tencent Cloud).

With the increasing demand for AI computing power, these companies present long-term investment opportunities.

3. Growth Prospects for AI Industry Applications

DeepSeek’s technology has already been integrated into multiple industries, including finance, healthcare, education, and autonomous driving. The future growth of the AI sector will extend beyond large model development to AI application companies, such as: Financial AI companies (e.g., Ping An Technology), Medical AI companies (e.g., BGI Genomics, Infervision), Intelligent education companies (e.g., TAL Education).

These companies are expected to benefit from AI commercialization, making them a key focus for investors.

IV. Future Outlook: Investment Opportunities in the New AI Wave

DeepSeek’s success signifies that China’s AI industry is moving toward self-sufficiency and enhanced global competitiveness. Over the next few years, investors should focus on the following AI investment trends:

• Long-term investment in leading AI technology stocks, including AI model developers, cloud computing providers, and computing power suppliers.
• AI-themed ETFs to diversify risk and capture industry growth.
• AI-driven industry integration in sectors such as healthcare, finance, and education, where AI applications are poised for commercial success.

As AI technology continues to evolve, DeepSeek’s rise is just the beginning. The AI industry is transitioning from technological breakthroughs to widespread commercial adoption, offering long-term investment potential. In this dynamic landscape, businesses and investors who strategically position themselves in AI development and application will reap significant rewards from this transformative wave.