U.S. stocks steady; Cook’s dismissal, Nvidia earnings in spotlight
Investing.com -- The debut of DeepSeek's R1 AI model has sparked industry-wide debate, but Rosenblatt analysts see potential benefits for key tech giants Meta (NASDAQ:META), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN).
Despite concerns over DeepSeek's claims of high performance at a fraction of OpenAI’s costs, the analysts argue that the innovations, if legitimate, could ultimately boost these companies' AI ambitions.
Meta, in particular, stands to gain. "If DeepSeek's advances are real, we would expect Meta to focus on incorporating them into Llama," the analysts noted.
CEO Mark Zuckerberg’s recent announcement of over $60 billion in AI-driven capex for 2025 underscores Meta’s commitment to leading the AI space. Rosenblatt suggests DeepSeek’s efficiency could enhance Llama's functionality, allowing Meta to sprint toward artificial general intelligence while potentially optimizing or reducing its spending.
Apple is another potential winner. Rosenblatt said DeepSeek's progress highlights China’s advanced AI capabilities, which could benefit Apple's development of localized AI features for China.
"Architectural advances could raise prospects for better AI capabilities on iPhone local processing," Rosenblatt stated, adding that this could improve features and drive upgrades for high-end devices.
Amazon's AWS business could also see advantages. "A slashing of AI foundational model costs would narrow the disadvantage it faces of not being perceived as a leader in proprietary AI models," Rosenblatt explained. Reducing AI costs would make AWS’s offerings more accessible to enterprises, driving broader adoption.
However, not all tech giants are equally positioned. For Google (NASDAQ:GOOGL), the analysts caution that lower training costs might accelerate the rise of AI competitors in search.
While the broader implications of DeepSeek remain uncertain, Rosenblatt believes the Magnificent 7 stocks will adapt, integrating any proven advancements into their own AI ecosystems.