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Tue, January 28, 2025

Here's why DeepSeek is weighing on power stocks


Published on 2025-01-28 02:41:09 - Investing
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  • Investing.com -- DeepSeek, a Chinese AI model, is disrupting power and energy infrastructure stocks. Analysts at BMO Capital Markets note that DeepSeek's high efficiency and low energy consumption are key factors.

The article from Investing.com discusses how DeepSeek, a new AI model developed by China's Huawei, is impacting power stocks. DeepSeek, which rivals models like Meta's Llama and xAI's Grok, has introduced significant advancements in AI technology, particularly in understanding and processing complex data sets. This development has led to increased demand for computational power, thereby affecting the energy sector. Power companies are facing higher electricity consumption due to the energy-intensive nature of AI data centers. This surge in demand is putting pressure on power stocks as utilities struggle to meet the growing needs, potentially leading to higher operational costs and infrastructure investments. Additionally, the article highlights concerns about grid stability and the environmental impact of increased power usage, which could further influence investor sentiment towards power companies.

Read the Full Investing Article at:
[ https://au.investing.com/news/stock-market-news/heres-why-deepseek-is-weighing-on-power-stocks-3643772 ]
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