In recent years, the rapid development of artificial intelligence technology in multiple industries is no longer news, but some specific AI innovative companies with their technological breakthroughs or market strategies can cause a huge sensation in a short period of time and quickly hit the stock market. DeepSeek is one of the typical examples. Its emergence and fire is not only closely related to its technological advantages, but also inseparable from the market environment, capital operation, and the promotion of external public opinion. So, why can DeepSeek burst into flames overnight, quickly triggering stock market volatility? The following is an in-depth analysis from multiple perspectives.
1. Technological Innovation: Breaking Tradition and Leading Efficient Transformation
The key driver behind DeepSeek’s rapid rise is its technological innovation. When it comes to training costs, DeepSeek has demonstrated astonishing cost-effectiveness. With just $5.58 million and 2,000 chips, it successfully built a top-tier model, which is a stark contrast to the billions of dollars that other companies typically spend on training similar models. This cost advantage does not come at the expense of performance. DeepSeek has achieved efficient utilization of computational power through systematic algorithmic innovation, breaking the traditional notion that AI training depends heavily on large amounts of high-end chips.
DeepSeek’s proprietary “Cognitive Chain Enhancement Technology” has allowed it to stand out in natural language processing and reasoning capabilities. This technology enables the model to understand context with 37% higher accuracy than mainstream AI systems, allowing it to better comprehend user intent and provide more logical and in-depth responses. In tasks such as mathematical problem solving and logical reasoning, DeepSeek has shown formidable strength, achieving excellent results in various specialized tests and competitions.
Additionally, DeepSeek has taken an unconventional approach by bypassing CUDA and directly developing on NVIDIA GPU’s low-level assembly language PTX. This move not only reduces hardware costs but also provides greater flexibility and efficiency for model training and operation, showcasing its deep technical foundation and innovative spirit.
2. Market Performance: Global Attention, Recognition from Users and Industries
From a market performance perspective, DeepSeek’s popularity has been impressive. In the app market, DeepSeek’s application rapidly climbed to the top of download rankings in 140 global markets, and it also ranked first on the U.S. App Store’s free app downloads. Within a short time, its daily visits doubled, from 6.2 million to 12.4 million, with downloads on the Google Play Store exceeding 10 million. This rapid user growth indicates that DeepSeek has garnered widespread attention and recognition globally.
In terms of industry applications, DeepSeek’s technology is being widely adopted across various sectors. In healthcare, it assists doctors in disease diagnosis, analyzing medical images and patient data to provide more accurate diagnostic suggestions. In the financial sector, it is used for risk assessment and investment decision-making, helping financial institutions manage risks and uncover investment opportunities more efficiently. In education, DeepSeek offers personalized tutoring, providing targeted answers and learning resources based on a student’s performance and challenges. These diverse applications highlight the immense value DeepSeek brings to various industries, further boosting its market influence.
3. Capital Chase: Stock Market Turmoil, Capital Follows New Hotspot
The explosive rise of DeepSeek quickly made waves in the stock market, triggering significant volatility. During its surge, investor expectations for the AI sector saw a notable shift. For instance, NVIDIA, a giant in the AI chip market, saw its stock price experience a dramatic drop, losing up to $600 billion in market value. This was primarily due to investor concerns that DeepSeek’s emergence could disrupt the AI industry’s competitive landscape and affect the market demand for traditional AI chips and related technologies.
At the same time, stocks related to DeepSeek garnered intense capital attention. In the Chinese A-share market, the tech innovation sector surged following DeepSeek’s rise, with stocks like Kingsoft Office hitting their daily trading limit. The Sci-Tech 50 Index ETF also performed strongly, rising nearly 3%. Multiple securities firms have designated the AI sector as a key focus, believing that DeepSeek and its related domestic tech subfields have huge investment potential. Whether it’s trend stocks backed by solid earnings or short-term, sentiment-driven trading targets, all saw performance opportunities driven by this concept.
This influx of capital and market fluctuations reflect the keen sensitivity of investors toward emerging technologies and anticipated industry transformations. It also demonstrates the massive attention and influence DeepSeek has generated in the capital markets, signaling new development directions and investment opportunities in the AI sector and prompting capital to reallocate within the market.
4. Future Prospects: Opportunities and Challenges Ahead
DeepSeek’s explosive rise and impact on the stock market are merely a stage in its broader journey of artificial intelligence development. Looking ahead, it faces both tremendous opportunities and challenges.
From an opportunity perspective, with ongoing technological advancements and expanding application scenarios, DeepSeek is expected to play a critical role in more fields, further increasing its market share and commercial value. Its open-source strategy will also attract more developers to participate in optimizing and innovating the model, creating a vibrant technological ecosystem that will drive the overall development of artificial intelligence.
However, the challenges are also evident. As its fame grows, data privacy and security concerns will likely attract more attention. Some regions and countries have already implemented restrictions or bans on its use, such as Taiwan’s ban on government institutions and critical infrastructure, Italy’s data protection agency halting its mobile app store listing, and the U.S. Navy prohibiting personnel from using it. Moreover, market competition will become increasingly fierce, as other competitors will ramp up their research and development investments in an effort to maintain a competitive edge.
Conclusion
DeepSeek’s explosive rise and its subsequent impact on the stock market are the results of the combined forces of technological innovation, market demand, and capital-driven momentum. It has not only changed the competitive landscape of the AI industry but has also brought new opportunities and challenges to investors and the broader market. As DeepSeek continues to innovate and respond to challenges, we can expect it to make even greater contributions to the development of artificial intelligence in the future.
