JPMorgan identifies companies that could be affected by China’s AI innovation, with potential changes in demand and market value.
The Impact of DeepSeek on Technology and the Stock Market
The emergence of the DeepSeek artificial intelligence model, developed in China and open-source, has caused a shake-up in financial markets. JPMorgan has identified a group of companies that could suffer negative effects due to the potential reduction in AI training and processing costs. Among them are Amphenol, Caterpillar, Intel, and Oracle, whose revenues could be affected by changes in technological infrastructure and demand for products and services linked to data centers and AI solutions.
Cost Reduction and Market Reconfiguration
According to JPMorgan, DeepSeek could drive a transition to more efficient and less expensive AI models, affecting the need for large investments in traditional AI infrastructure. This could shift value balance both at the application layer and the training infrastructure layer, with repercussions across various industries.
Below, we present the eight companies that, according to JPMorgan’s report, could be most affected by this technological revolution:
| Company | Ticker | Performance Since DeepSeek | Risk Reason According to JPMorgan |
|---|---|---|---|
| Amphenol | APH | -X% | Decrease in demand for connectors for data centers. |
| Caterpillar | CAT | -11.9% | Slower growth in sales of power generators. |
| Custom Truck One Source | CTOS | +1.3% | Impact on the electric distribution market. |
| Cummins | CMI | +0.03% | Reduced demand for generators for data centers. |
| Intel | INTC | -5.5% | Shift toward accelerated computing affecting CPU demand. |
| CS Disco | LAW | +5.1% | Greater competition from more efficient AI models in legal services. |
| Oracle | ORCL | -7.2% | Potential overbuilding of data centers. |
| Fabrinet | FN | -17.2% | Lower demand for electrical components linked to Nvidia. |
An Uncertain Future for Technology and AI
While DeepSeek has been a catalyst for market volatility, the long-term effects remain to be seen. Companies like Nvidia, which experienced a historic market cap loss after DeepSeek’s arrival, may adapt and find new growth opportunities as the sector evolves.
The key for investors will be to assess which companies can adapt to changes and which will face greater challenges in an environment where AI continues to revolutionize the global economy. We will be watching the next market movements closely!