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TECHNOLOGY: Tech Underperforms Slightly; ASML 2-4bps Wider

TECHNOLOGY

At the aggregate level, Tech is underperforming but not by a significant amount. ASML is amongst the worst-performing equities with spreads 2-4bps wider; the idea that Deepseek could threaten global AI-related CapEx has obvious feed-through with the name putting AI front-and-centre as a primary growth driver it’s recent investor day though the impact is hypothetical for now.

  • Deepseek is a Chinese AI startup (founded 2023) offering open-source models.
  • Said to rival top AI chatbots such as OpenAI at lower costs.
  • Seems to threaten the notion that large capex is required to stay competitive in the AI space.
  • Also potentially stifles the effectiveness of restrictions on AI-related chip exports to China.
  • The DeepSeek app has topped download charts in multiple countries.

 

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At the aggregate level, Tech is underperforming but not by a significant amount. ASML is amongst the worst-performing equities with spreads 2-4bps wider; the idea that Deepseek could threaten global AI-related CapEx has obvious feed-through with the name putting AI front-and-centre as a primary growth driver it’s recent investor day though the impact is hypothetical for now.

  • Deepseek is a Chinese AI startup (founded 2023) offering open-source models.
  • Said to rival top AI chatbots such as OpenAI at lower costs.
  • Seems to threaten the notion that large capex is required to stay competitive in the AI space.
  • Also potentially stifles the effectiveness of restrictions on AI-related chip exports to China.
  • The DeepSeek app has topped download charts in multiple countries.

 

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