Deepseek was sold just two weeks ago, but stock prices for companies related to artificial intelligence are beginning to appear to never happen. The rise in China’s competitors to large-scale language models such as ChatGpt, possibly at some cost, has taken the story of AI trends, causing dramatic sales of some of the biggest winners in the market . Nvidia’s shares plummeted nearly 17% on January 27th, bringing its one-day market value, the largest in history, of any stock. But now, Nvidia has recovered most of that one-day drop, rising 3% on its fifth straight gain trajectory in noon trading on Monday. Other AI trades seem to have bounced even faster. Global X Artificial Intelligence & Technology ETF (AIQ) is back to where it was trading at record highs, marking the day of Deepseek’s sale. AIQ 1M Mountain This AI fund has surpassed its level even before its sale on January 27th. Ari Wald, a technical analyst at Oppenheimer, said in a note to clients that the fund’s rebounds appear to be the beginning of an outperformance period. “The key point is that the long-term bullish trend is unharmed, specifically, being bullish about the S&P 500 and ETF’s ability to infiltrate the new annual relative highs,” Waldo said. . Oppenheimer sees the fund as a proxy for a wide range of AI themes. ETF’s top holdings include Tencent, Meta platforms and Accenture, in addition to chip stocks such as Broadcom and Nvidia. The fact that the broader fund has outperformed Nvidia over the past two weeks could be a sign that AI trade has evolved and not faded in the wake of Deepseek. “The less money a company needs to spend on AI picks and shovels, the more profitable companies will buy and deploy them by more profitable companies, including major cloud companies.” As you say in the note.
