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AI Stocks Defy DeepSeek Panic: NVDA & 2 Other Top Picks
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Technology and artificial intelligence (AI) stocks have staged a powerful rally, boldly defying the DeepSeek hysteria. This remarkable rebound comes after DeepSeek AI, a low-cost Chinese AI startup from Hangzhou, sent shockwaves through U.S. tech stocks and global markets, triggering widespread uncertainty. Does this suggest that Wall Street views the frenzy as a golden opportunity to buy fundamentally strong technology stocks NVIDIA (NVDA - Free Report) , Broadcom Inc. (AVGO - Free Report) and Twilio Inc. (TWLO - Free Report) ?
DeepSeek Frenzy & its Initial Market Impact
Recently, DeepSeek became the most downloaded free app on Apple’s (AAPL - Free Report) U.S. store. This caused a big shake-up in the stock market. Investors panicked, thinking DeepSeek’s AI technology could compete with OpenAI (creator of ChatGPT) while using less computing power. This scared people because companies like NVIDIA make expensive chips used for AI, and if a competitor can do the same with cheaper tech, it could hurt NVDA’s business.
Because of this fear, technology and AI-related stocks like NVIDIA, Microsoft, Alphabet (Google) and others significantly declined on Monday. The Nasdaq Composite index (which includes many technology stocks) also fell more than 3%.
Now’s the Chance to Buy Big
While DeepSeek claims to have developed a cost-efficient AI model, its performance doesn’t match that of AI systems from established U.S. companies like OpenAI and Alphabet. DeepSeek's AI struggles with basic tasks and delivers inconsistent results when handling complex data, making it less accurate and reliable than the cutting-edge models developed by leading tech firms.
Moreover, creating a truly competitive AI system isn’t just about using cheaper chips. It requires massive infrastructure, including data centers, high-performance servers and specialized technologies like cooling systems and software optimizations. Additionally, significant research and development investments are necessary to refine and scale AI capabilities. Without these critical components, an AI model may appear impressive on the surface but lack the depth and robustness needed for widespread adoption.
Given these challenges, some Wall Street analysts view the recent market dip as a prime buying opportunity. They argue that despite DeepSeek’s advancements, U.S. companies are unlikely to shift toward Chinese AI infrastructure. Instead, major tech players will continue to rely on high-performance chips from industry leaders like NVIDIA and AMD to power their AI projects.
Furthermore, AI investment remains on an upward trajectory, further reinforcing confidence in the sector. The U.S. government is committed to a $500 billion AI infrastructure initiative, known as Project Stargate, underscoring the ongoing demand for advanced AI technologies. With these factors in mind, analysts believe that the current pullback in Technology and AI stocks presents a strategic entry point for long-term investors.
Think Long Term & Bet on 3 Tech Stocks: NVDA, AVGO, TWLO
After a decline of more than 3% on Monday, the Nasdaq Composite bounced back 2% yesterday, showcasing the resilience of AI and technology stocks amid the DeepSeek hysteria. This highlights the importance for investors to focus on long-term gains and tune out short-term market fluctuations. Three tech stocks that investors should consider continuously adding to their portfolios are:
NVIDIA
The long-term prospects of NVIDIA, carrying a Zacks Rank #2 (Buy), remain strong as it is integral to the AI revolution, providing critical infrastructure for AI model training and inference. The company’s graphic processing units (GPUs) and accompanying software ecosystems dominate this space, rapidly ramping up AI-specific workloads and cloud infrastructure demand.
The nearly 9% surge in stock price during the last trading session, followed by a 17% drop on Monday, indicates that Wall Street is optimistic about the company's long-term potential.
Broadcom
Broadcom is a key player in the semiconductor space, which continues to see high demand, especially with the ongoing growth of AI, cloud computing and 5G technologies. As these technologies advance, Broadcom’s diverse product portfolio, including networking chips, storage solutions and wireless communication components, positions the company for sustained growth.
The nearly 3% jump in stock price during the last trading session, coupled with a 17.4% decline on Monday, suggests that Wall Street remains optimistic about the #2 Ranked company's long-term prospects.
Twilio
Twilio, sporting a Zacks Rank #1 (Strong Buy), is increasingly integrating AI-driven capabilities into its platform, which enhances its offerings. This positions it well for future growth as more businesses adopt AI technologies for automation, customer support and personalized communication. You can see the complete list of today’s Zacks #1 Rank stocks here.
The impressive nearly 6% rise in stock price during the last trading session, highlights Wall Street’s unwavering confidence in the company’s resilient growth potential and long-term success.
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AI Stocks Defy DeepSeek Panic: NVDA & 2 Other Top Picks
Technology and artificial intelligence (AI) stocks have staged a powerful rally, boldly defying the DeepSeek hysteria. This remarkable rebound comes after DeepSeek AI, a low-cost Chinese AI startup from Hangzhou, sent shockwaves through U.S. tech stocks and global markets, triggering widespread uncertainty. Does this suggest that Wall Street views the frenzy as a golden opportunity to buy fundamentally strong technology stocks NVIDIA (NVDA - Free Report) , Broadcom Inc. (AVGO - Free Report) and Twilio Inc. (TWLO - Free Report) ?
DeepSeek Frenzy & its Initial Market Impact
Recently, DeepSeek became the most downloaded free app on Apple’s (AAPL - Free Report) U.S. store. This caused a big shake-up in the stock market. Investors panicked, thinking DeepSeek’s AI technology could compete with OpenAI (creator of ChatGPT) while using less computing power. This scared people because companies like NVIDIA make expensive chips used for AI, and if a competitor can do the same with cheaper tech, it could hurt NVDA’s business.
Because of this fear, technology and AI-related stocks like NVIDIA, Microsoft, Alphabet (Google) and others significantly declined on Monday. The Nasdaq Composite index (which includes many technology stocks) also fell more than 3%.
Now’s the Chance to Buy Big
While DeepSeek claims to have developed a cost-efficient AI model, its performance doesn’t match that of AI systems from established U.S. companies like OpenAI and Alphabet. DeepSeek's AI struggles with basic tasks and delivers inconsistent results when handling complex data, making it less accurate and reliable than the cutting-edge models developed by leading tech firms.
Moreover, creating a truly competitive AI system isn’t just about using cheaper chips. It requires massive infrastructure, including data centers, high-performance servers and specialized technologies like cooling systems and software optimizations. Additionally, significant research and development investments are necessary to refine and scale AI capabilities. Without these critical components, an AI model may appear impressive on the surface but lack the depth and robustness needed for widespread adoption.
Given these challenges, some Wall Street analysts view the recent market dip as a prime buying opportunity. They argue that despite DeepSeek’s advancements, U.S. companies are unlikely to shift toward Chinese AI infrastructure. Instead, major tech players will continue to rely on high-performance chips from industry leaders like NVIDIA and AMD to power their AI projects.
Furthermore, AI investment remains on an upward trajectory, further reinforcing confidence in the sector. The U.S. government is committed to a $500 billion AI infrastructure initiative, known as Project Stargate, underscoring the ongoing demand for advanced AI technologies. With these factors in mind, analysts believe that the current pullback in Technology and AI stocks presents a strategic entry point for long-term investors.
Think Long Term & Bet on 3 Tech Stocks: NVDA, AVGO, TWLO
After a decline of more than 3% on Monday, the Nasdaq Composite bounced back 2% yesterday, showcasing the resilience of AI and technology stocks amid the DeepSeek hysteria. This highlights the importance for investors to focus on long-term gains and tune out short-term market fluctuations. Three tech stocks that investors should consider continuously adding to their portfolios are:
NVIDIA
The long-term prospects of NVIDIA, carrying a Zacks Rank #2 (Buy), remain strong as it is integral to the AI revolution, providing critical infrastructure for AI model training and inference. The company’s graphic processing units (GPUs) and accompanying software ecosystems dominate this space, rapidly ramping up AI-specific workloads and cloud infrastructure demand.
The nearly 9% surge in stock price during the last trading session, followed by a 17% drop on Monday, indicates that Wall Street is optimistic about the company's long-term potential.
Broadcom
Broadcom is a key player in the semiconductor space, which continues to see high demand, especially with the ongoing growth of AI, cloud computing and 5G technologies. As these technologies advance, Broadcom’s diverse product portfolio, including networking chips, storage solutions and wireless communication components, positions the company for sustained growth.
The nearly 3% jump in stock price during the last trading session, coupled with a 17.4% decline on Monday, suggests that Wall Street remains optimistic about the #2 Ranked company's long-term prospects.
Twilio
Twilio, sporting a Zacks Rank #1 (Strong Buy), is increasingly integrating AI-driven capabilities into its platform, which enhances its offerings. This positions it well for future growth as more businesses adopt AI technologies for automation, customer support and personalized communication. You can see the complete list of today’s Zacks #1 Rank stocks here.
The impressive nearly 6% rise in stock price during the last trading session, highlights Wall Street’s unwavering confidence in the company’s resilient growth potential and long-term success.