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Investors are concerned as the latest artificial intelligence (AI) model from Chinese startup DeepSeek triggered a sharp sell-off in Nvidia (NVDA) shares and the broader chip space on Monday.
Infrastructure Capital Advisors CEO and CIO Jay Hatfield joins Market Domination Overtime to discuss the equity reactions (^DJI, ^IXIC, ^GSPC) to China’s DeepSeek.
As investors react to the AI model potentially shaking up the AI chip market, Hatfield offers his perspective on the broader implications for tech stocks and the role of efficiency in driving growth.
“I think one area where we can add some value is on the power and gas side. That used to be a utility investment banker, and we run an MLP fund [master limited partnerships]... and those stocks were just way ahead of themselves because that's an old economy business," Hatfield explains.
“We do think that with regard to the chip stocks like we've been recommending, Broadcom (AVGO), that having lower costs actually will have broader applications," he says.
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Hatfield suggests that the recent market rotation is a positive sign, especially with rising bond values (^TYX, ^TNX, ^FVX). Watch the video above to also hear what Hatfield anticipates from Big Tech earnings.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
This post was written by Josh Lynch