DeepSeek Launches AI Model, Nvidia and Microsoft in Spotlight

DeepSeek launches a new AI model while Nvidia and Microsoft stand to gain significantly. Investors should focus on these key players in the AI revolution.

Date: 01-02-2025

AI Rating: 7

Market Impact of AI Innovations
DeepSeek's entrance into the AI market and the subsequent competition with established players like ChatGPT emphasizes the ongoing growth in the AI sector. This suggests the potential for increased demand for AI-related technologies and supporting companies.

Revenue Growth
The report highlights Nvidia's strong revenue channels as they dominate the GPU market for AI, implying sustained and potentially increasing income from sales. Nvidia's market capitalisation and revenue streams are bolstered by the demand for AI applications, positioning it positively for future growth.

Economic Moat and Market Position
With a market share estimated between 70% to 95%, Nvidia's dominance remains a key factor for investors. Its ability to attract a developer ecosystem and reinvest to maintain its lead demonstrates a robust business model.

Microsoft's Cloud Computing Revenue
Microsoft’s Intelligent Cloud segment generated $38.9 billion of its total $65.6 billion last quarter, marking a substantial revenue growth area, driven largely by AI service demands. The projected $80 billion investment in cloud infrastructure further highlights its growth strategy aligned with AI trends.

Stocks: NASDAQ:NVDA NASDAQ:MSFT