China's DeepSeek AI Rattles Tech Stocks, Analyst Ives Says Market Plunge 'Golden Buying Opportunity'

Tech stocks are under siege as DeepSeek, a little-known Chinese AI startup, shakes up the market with its latest large language model (LLM).

But Wedbush analyst Daniel Ives isn't buying the panic, calling this sell-off "another golden buying opportunity" rather than a real threat to the AI revolution.

DeepSeek’s Surprise Move Sends Shockwaves

DeepSeek's LLM, which launched last week, surged to the top of Apple Inc‘s AAPL App Store, rivalling OpenAI’s ChatGPT and Meta Platforms Inc's META Llama 3.1.

According to DeepSeek, was built in just two months for under $6 million, using restricted Nvidia Corp NVDA chips. That's enough to make Wall Street nervous, with heavy pressure on the Nasdaq and AI darlings like Nvidia feeling the heat.

But Ives remains unfazed, pointing out that "No US Global 2000 is going to use a Chinese start-up DeepSeek to launch their AI infrastructure and use cases."

Read Also: Nvidia Stock Slides Overnight On Robinhood As China’s DeepSeek Sparks Doubts Over GPU Spending Frenzy — Chamath Palihapitiya Highlights Report Indicating AI Holy Grail Cracked

AI Revolution Intact – And Maybe Even Stronger

While DeepSeek's reported achievement is impressive, Ives sees it as a speed bump, not a roadblock. "The focus of AI right now is the enterprise use cases and broader infrastructure propelling this $2 trillion of Cap-Ex over the next 3 years," he noted.

The real AI arms race is in AGI, robotics, and autonomous tech—territory where DeepSeek simply can't compete.

Ives said this is just another moment for nervous traders to sell and for long-term investors to load up on Nvidia, Microsoft Corp MSFT, Alphabet Inc GOOGL GOOG, and the rest of the AI elite.

"The bears have missed the historical rally in tech stocks the last two years and will miss the next two years constantly waiting for the black swan event to end the AI Revolution trade,” Ives said.

Read Next:

• Super Micro Stock Nosedives As DeepSeek AI Threat Rattles Investors

Image created using artificial intelligence via Midjourney.