The big topic of the day is DeepSeek, Chinese AI / Artificial Intelligence, which has caused stock market turmoil and turned the entire tech world upside down.
DeepSeek has managed to catch up with the best American AI companies in just 2-3 months. And this despite the US refusing to export the most advanced chips! They have developed the technology 97% cheaper than OpenAI and Google – and they are doing it 'open source'. This means that developers from all over the world can help make the platform even better."
This has shaken up the stock markets. Take Nvidia, for example. Once seen as having a near monopoly on the most advanced computer chips for AI technology – this stock fell 17% yesterday, and could fall another 80% if it were to be priced like a “regular” tech manufacturer.
"The companies that currently spend huge sums on AI are suddenly facing fierce competition from China."
So, what does this mean for you? Well, it shows how important it is to be diversified – or to have a spread of investments! Today, 25% of the world index consists of the eight largest American tech companies (including Invidia).
Having a broader portfolio reduces the risk when things like this happen.
"We believe this will be good for the market in the long term, and are following this closely. Want to know more about how to manage risk and opportunities in the market? Follow our blog and webinars at NOON Invest