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Stifel (SF) applied technology analyst Ruben Roy joins "Catalysts" to discuss the impact of DeepSeek's cost-efficient artificial intelligence (AI) model on the AI trade.
"It's going to add some volatility because I think there's a lot of confusion in what DeepSeek actually did," Roy explains to Yahoo Finance. He notes that the "big takeaway" from DeepSeek's emergence is AI's increasing efficiency, which he believes will drive growing demand.
Despite potential challenges, Roy remains optimistic about the AI trade, stating, "This will all work out as we flow through 2025. We're still big bulls for the AI trade."
Regarding potential beneficiaries, Roy points to networking stocks. As AI expands into consumer electronics, he emphasizes the importance of "the network — the underlying plumbing for moving data," highlighting the increasing complexity of AI infrastructure.
To watch more expert insights and analysis on the latest market action, check out more "Catalysts" here.
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This post was written by Angel Smith