January 27, 2025 08:51 GMT
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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