Hartford Schroders Tax-Aware Bond ETF (ARCA: HTAB)

Latest news for Hartford Schroders Tax-Aware Bond ETF (ARCA:HTAB)

Hartford Schroders Tax-Aware Bond ETF

In seeking to achieve the Funds investment objective, the Sub-Advisers employ a tax-aware investing strategy that attempts to realize total return for shareholders, primarily in the form of current income and price appreciation, by balancing investment considerations and tax considerations. Total return consists of income earned on the Funds investments, plus capital appreciation, if any. The Sub-Advisers allocate the Funds assets among taxable and tax-exempt investments with no limitation on the amount of assets that may be invested in either category. The Fund is eligible to pay exempt-interest dividends only if 50 percent of the value of its total assets is invested in tax-exempt securities at the end of each quarter of its taxable year.

NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares are moving lower on Wednesday amid reports indicating that Donald Trump administration officials are discussing further restricting NVIDIA&#8217;s <a href="https://www.benzinga.com/news/management/25/01/43274796/jensen-huang-loses-20b-in-wealth-how-deepseek-hit-nvidia-stock-and-worlds-richest-people">sales to China</a>.
What To Know: According to <a href="https://www.bloomberg.com/news/articles/2025-01-29/trump-officials-discuss-tightening-curbs-on-nvidia-china-sales?embedded-checkout=true">Bloomberg</a>, citing sources familiar with the matter, officials are exploring additional restrictions on NVIDIA&#8217;s sales to China, with a particular focus on limiting the sale of H20 chips.
NVIDIA&#8217;s H20 chips are reduced semiconductors designed to comply with restrictions imposed by the U.S. government on chip exports to China. These chips are capable of hosting artificial intelligence software while adhering to these export limitations.
According to the report, it's unlikely a decision on chip restrictions will be made soon, as the Trump administration continues to complete its staffing. During his confirmation hearing, Commerce Secretary nominee Howard Lutnick appeared supportive of chip controls.
NVIDIA said it, "is ready to work with the administration as it pursues its own approach to AI." Furthermore, the company has argued that the restrictions will undermine U.S. companies and further China&#8217;s drive for technological independence, which goes against the objectives of the trade actions.
If the Trump administration moves forward with additional chip restrictions, it could impact NVIDIA&#8217;s revenue, as China is the largest market for semiconductors.
Earlier this week, NVIDIA and other companies in the semiconductor industry and beyond saw declines due to <a href="https://www.benzinga.com/content/43275286/is-deepseek-challenging-nvidias-ai-dominance">heightened competition</a> from China in the AI sector. Chinese startup DeepSeek launched its own AI model, reportedly on par with OpenAI&#8217;s ChatGPT.
NVDA Price Action: At the time of writing, Nvidia stock is trading 4.9% lower at $121.63 at the time of publication Wednesday, according to data from <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>.
Read Next:
<ul>
<li> <a href="https://www.benzinga.com/25/01/43256648/cathie-wood-swoops-in-to-buy-amd-shares-amid-deepseek-tech-upheaval-dumps-tesla-stock-worth-8-1-million">Cathie Wood Swoops In To Buy AMD Shares Amid DeepSeek Tech Upheaval, Dumps Tesla Stock Worth $8.1 Million</a></li>
</ul>
Image: Shutterstock

Asia

News

Movers

Tech

NVDA

Nvidia Faces Export Risks As US Officials Weigh Tougher AI Chip Limits For China

<a href="https://www.youtube.com/watch?v=nC8RLn1Bb7c">https://www.youtube.com/watch?v=nC8RLn1Bb7c</a>
&nbsp;

Macro Economic Events

Economics

Federal Reserve

Fed Chair Powell Says We Are Above Everyone On Committee's Estimates Of Long-run Neutral; Our Policies Are Having A Meaningful Effect On The Economy, Bringing Inflation Under Control; Meaningfully Above Neutral Rate; It's Appropriate We Not Be In A Hurry To Make Further Adjustments

<a href="https://www.youtube.com/watch?v=nC8RLn1Bb7c" title="https://www.youtube.com/watch?v=nC8RLn1Bb7c">https://www.youtube.com/watch?v=nC8RLn1Bb7c</a>

Fed Chair Powell Says It's A Low-Hiring Environment In Labor Market; Immigration Has Decreased Very Significantly, Slowdown Likely To Continue; Considered The NGFS "Network for Greening the Financial System" Withdrawal At Length; Left NGFS Because Its Work Has Broadened Significantly, And Intended To Mobilize Transition; NGFS Activities Is Way Beyond Any Plausible Fed Mandate; Many Activities Of NGFS Are Not A Good Fit For The Fed

Fed Chair Powell Says We Don't Think We Need Labor Market To Cool Off Any More; Overall Labor Market Does Seem To Be Stable, Broadly In Balance; Flows Across Border Have Decreased, Every Reason To Think That Will Continue, But Job Creation Is Also Down; Together Those Could Be A Reason For Unemployment Rate To Stabilize

Fed Chair Powell Says We Are Reviewing Details Of Executive Orders; We Are Working To Align Our Policies With Executive Orders Under Applicable Law; Staff Looks At A Range Of Possible Outcomes, On Impact Of Possible Policies; We Think We See The Pathway For That To Happen; Now See Shelter Inflation Coming Down Pretty Steadily; Seem To Be Set Up For Further Progress On Inflation; We Are Going To Want To See It

Trading Ideas

XFOR

X4 Pharmaceuticals Shares Halted On Circuit Breaker To The Upside, Stock Now Up 28.7%

In the midst of <a href="https://www.benzinga.com/topic/artificial-intelligence">AI&#8217;s rapid transformation</a>, BofA Securities analyst Vivek Arya sees a significant opportunity for NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>).
These companies are positioned at the heart of what Arya refers to as AI&#8217;s &#8220;Sputnik moment,&#8221; drawing an analogy to the Cold War era when the U.S. ramped up its efforts after the Soviet Union's surprise launch of Sputnik into space.
In this context, DeepSeek's rise in AI is seen as a catalyst for an even bigger wave of investment and BofA's analyst believes the hyperscalers and semiconductor companies will reap the rewards.
<h1 class="wp-block-heading">&#8220;DeepSeek: More Evolutionary Than Revolutionary&#8221; – But A Wake-Up Call For AI Investment</h1>
Arya is not overly impressed by DeepSeek's software contributions, as they are more about &#8220;evolutionary&#8221; progress rather than a &#8220;revolutionary&#8221; shift in AI. Still, the implications for the semiconductor space are clear. While &#8220;DeepSeek&#8217;s contributions are noteworthy,&#8221; they don&#8217;t represent a drastic change in course for the industry. 
However, they do accelerate AI capex investments, especially in &#8220;AI compute TAM toward $500bn+&#8221; over the next several years.
For Nvidia, Broadcom and Marvell, the timing couldn't be better.
These companies are already in a prime position, supplying essential hardware for AI infrastructure. Arya maintains a Buy rating on all three, emphasizing that the &#8220;rising tide should benefit all&#8221; as the AI compute market expands significantly.
Read Also: <a href="https://www.benzinga.com/tech/25/01/43302711/nvidia-hardest-hit-among-mag-7-stocks-by-deepseek-and-this-stock-ranked-second" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Nvidia Hardest Hit Among Mag 7 Stocks By DeepSeek, Poll Shows — And This Stock Ranked Second</a>
<h1 class="wp-block-heading">The Role of Hyperscalers, AI Hardware</h1>
One of the core insights Arya highlights is that the U.S. hyperscalers (tech giants like Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google, and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) will continue to drive much of the AI spending in the coming years. These companies will push toward &#8220;artificial general intelligence (AGI)&#8221; and broader enterprise use cases. The key to their success will be investing not only in &#8220;software&#8221; but also in &#8220;advanced hardware.&#8221;
This is where Nvidia, Broadcom, and Marvell come in, offering both the hardware capabilities and adaptability to meet the ever-evolving needs of AI workloads.
Arya forecasts the total AI compute market to &#8220;double towards $500bn+&#8221; by 2028, a growth driven by the need for large-scale model training, AI inference, and cloud infrastructure upgrades. As the race for AI dominance continues, &#8220;U.S. hyperscalers&#8221; will remain at the forefront, driving the bulk of this spending.
<h1 class="wp-block-heading">&#8216;Rising Tide Should Benefit All&#8217;</h1>
Nvidia, Broadcom and Marvell are all expected to benefit from this surge in demand. With DeepSeek&#8217;s AI software optimization now part of the broader landscape, it's clear that the hardware side of the equation — &#8220;ASIC versus general purpose GPU&#8221; — will continue to evolve.
Custom ASICs (like those from Broadcom and Marvell) offer cost efficiencies, but &#8220;merchant GPU (NVDA) could prove more adaptable to rapidly changing compute and model mix.&#8221;
For investors, the message is clear: These companies are well-positioned to capitalize on the growing AI infrastructure market. With AI compute TAM expected to rise to &#8220;$500bn+&#8221;, BofA sees the current downturn in the sector as an &#8220;enhanced Buy opportunity.&#8221;
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43304027/deepseek-selloff-is-a-correction-not-start-of-sustained-bear-market-goldman-sachs">DeepSeek Selloff Is A Correction, Not Start Of &#8216;Sustained Bear Market&#8217;: Goldman Sachs</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Long Ideas

Analyst Ratings

AMZN

AVGO

GOOG

GOOGL

MRVL

MSFT

Why Nvidia, Broadcom, Marvell Are This Analyst's Top AI Bets In 'Sputnik Moment'

Fed Chair Powell Says Forecasts Are Highly Uncertain; Currently Some Elevated Uncertainty Because Of Significant Policy Shifts, But Should Be Passing; Right Now Forecasts On Policy Are In The Nature Of A Placeholder; Expect Further Progress On Inflation; We Don't Need To Be In A Hurry To Make Any Adjustments

Ocean Power Techs's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OPTT#NYSE">OPTT</a>) short percent of float has fallen 19.19% since its last report. The company recently reported that it has 6.66 million shares sold short, which is 4.59% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.0 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Ocean Power Techs Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1738179923_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Ocean Power Techs has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Ocean Power Techs's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Ocean Power Techs's peer group average for short interest as a percentage of float is 11.02%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

OPTT

Looking Into Ocean Power Techs's Recent Short Interest

Zeta Global Holdings's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZETA#NYSE">ZETA</a>) short percent of float has risen 10.25% since its last report. The company recently reported that it has 19.37 million shares sold short, which is 10.43% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.5 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Zeta Global Holdings Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1738179918_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Zeta Global Holdings has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Zeta Global Holdings's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Zeta Global Holdings's peer group average for short interest as a percentage of float is 10.66%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

ZETA

How Is The Market Feeling About Zeta Global Holdings?

Bio-Techne's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECH#NYSE">TECH</a>) short percent of float has risen 7.35% since its last report. The company recently reported that it has 4.05 million shares sold short, which is 2.92% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.95 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Bio-Techne Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1738179912_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Bio-Techne has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Bio-Techne's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Bio-Techne's peer group average for short interest as a percentage of float is 5.41%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

TECH

(TECH) - Analyzing Bio-Techne's Short Interest

Editor&#8217;s note: This story has been updated with additional details. 
The Federal Reserve elected to keep interest rates unchanged at its Wednesday meeting, snapping a streak of three consecutive rate cuts <a href="https://www.benzinga.com/topic/interest-rates">that began in September.</a>
The federal funds rate remains in a target range of 4.25% to 4.5%, with a unanimous decision from the committee. In December, the Fed lowered rates by 25 basis points, bringing the total cumulative cuts for 2024 to 100 basis points.
The FOMC statement from the January meeting indicated that &#8220;economic activity has continued to expand at a solid pace&#8221; and acknowledged that while inflation has moved closer to the 2% target, it &#8220;remains somewhat elevated.&#8221; 
&#8220;The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance,&#8221; the statement added.
In its prior December projections, the Fed had upwardly revised 2025 inflation forecasts, expecting Personal Consumption Expenditures (PCE) inflation to rise to 2.5%, up from 2.1% in September. Core PCE inflation was also projected at 2.5%. 
Echoing its December policy statement, which sparked investor concerns over a more hawkish stance, the Fed reiterated that &#8220;in considering the extent and timing of additional adjustments&#8221; to interest rates, &#8220;the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.&#8221;
There were no changes to the pace of quantitative tightening. The Fed will continue reducing its holdings of Treasury securities, agency debt and agency mortgage-backed securities, as previously announced.
Investors now turn the focus to Fed Chair Jerome Powell&#8216;s <a href="https://www.youtube.com/live/VDH_CpFih-8">press conference</a>. 
<h3 class="wp-block-heading">Market Reactions</h3>
The decision to hold interest rates steady was widely expected by market participants, with both Fed futures and betting markets pricing in a near certainty of no adjustment.
Equity markets showed mixed reactions. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fluctuated near the flatline by 2:05 p.m. ET, holding session losses at 0.6%. Small caps, tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMW#NYSE">IMW</a>) fell by 0.4%. 
Shares of Nvidia Corp. extended their losses, plunging 6% in early afternoon trading in New York, as the Trump administration vowed to impose further chip export restrictions on China.
The U.S. dollar index, tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), edged higher by 0.2%, supported by the Fed's cautious tone on inflation.
Treasury yields moved slightly higher, with the policy-sensitive two-year yield inching up by 3 basis points to 4.24%.
Gold prices, as mirrored by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), slipped 0.2%, while Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell by 0.8%.
&#8220;We do not need to be in hurry to adjust our policy stance,&#8221; Powell stated during early remarks at his press conference. 
Powell avoided answering questions about Donald Trump&#8216;s interference in Fed policy after the president explicitly called for lower interest rates during an event in Davos last week.
Sector-wise the Real Estate SPDR Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) was the day&#8217;s worst performer, extending losses to 1.3%. 
Defensive sectors, like consumer staples and utilities, held broadly steady.
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: Jerome Powell Speech &#x7C; FOMC Meeting &#x7C; Jan 29th, 2025" width="500" height="281" src="https://www.youtube.com/embed/VDH_CpFih-8?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Read now: 
<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43302711/nvidia-hardest-hit-among-mag-7-stocks-by-deepseek-and-this-stock-ranked-second">EXCLUSIVE: Nvidia Hardest Hit Among Mag 7 Stocks By DeepSeek, Poll Shows — And This Stock Ranked Second</a></li>
</ul>
Illustration of Federal Reserve Chair Jerome Powell created using artificial intelligence via MidJourney.

Econ #s

Markets

$BTC

PowerShares DB US Dollar Index Bullish Fund

XLRE

Fed Holds Interest Rates Steady, Halts Streak Of Consecutive Cuts, Says Inflation Remains 'Elevated' (UPDATED)

Fed Chair Powell Says Got Two Good Readings In A Row On Inflation; The Committee Is In The Mode Of Waiting To See What Policies Are Enacted; Don't Know What Will Happen With Fiscal, Regulatory, Tariffs, Immigration Policy; Need To Let Policies Be Articulated Before Can Assess Impact On Economy; No Different From Beginning Of Any Administration; Will Patiently Watch And Understand, Will See How It Plays Out

The U.S. markets have been in a frenzy over the past few days thanks to a new AI model from <a href="https://www.benzinga.com/25/01/43302340/deepseeks-ai-breakthrough-microsoft-poised-to-benefit-but-oracle-faces-cloud-growth-challenges">Chinese company Deepseek.</a> 
The market reaction has been challenging for chipmakers and semiconductors companies like&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) ,&nbsp;Advanced Micro Devices Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>),&nbsp;Arm Holdings&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), and others.
Nvidia experienced a historic drop in its stock price, plummeting nearly 17% and erasing over $589 billion in market capitalization—the largest single-day market cap loss for any company in U.S. history. Broadcom also saw a significant decline, with shares falling approximately 17%, while AMD's stock price dropped by 4.89%. ARM faced a decline of about 8% on Monday, contributing to a broader selloff across the semiconductor industry.
Despite the buzz around DeepSeek's latest model, R1, the news is largely positive for chipmakers like Nvidia. The market sell-off appears unwarranted and presents a potential long-term buying opportunity for investors.
Deepseek is a secretive AI company based in China, backed by a parent quant fund called High-Flyer. The company's whole thesis is to build Artificial General Intelligence (AGI) and open-source it for general use. While they've been building models and AI technology for a few years, they only recently captured the interest of the American press.
The company made headlines for a few reasons: 1) the press misreported that Deepseek trained a reasoning AI model for roughly $5.6 million, 2) investors felt like the fact that Deepseek was able to build a competitive AI model for so cheap implied that the demand for semiconductor chips used for AI, like the ones Nvidia sells, would be lower in the long run.
In fact, most of the news from Deepseek shows that semiconductors and chips will only get more valuable over time. Chinese companies are already having difficulty keeping up with chip demand after US sanctions prevented advanced chips for AI from being sold to China. Deepseek founder Liang Wenfeng said that the biggest limitation for his company is the availability of high-end AI chips. "Money has never been the problem for us; bans on shipments of advanced chips are the problem," he said, <a href="https://www.chinatalk.media/p/deepseek-ceo-interview-with-chinas">according</a> to ChinaTalk.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43304027/deepseek-selloff-is-a-correction-not-start-of-sustained-bear-market-goldman-sachs">DeepSeek Selloff Is A Correction, Not Start Of &#8216;Sustained Bear Market&#8217;: Goldman Sachs</a>
AI chips were traditionally used to train large language models and to give them knowledge of all the info on the Internet. But that was a while ago. Today, AI companies mainly use chips for inference—the computing required to generate answers or outputs for users in real-time.
For instance, when you use tools like ChatGPT or Claude, the responses you receive are powered by inference compute. If the answers are slow, it's often because the system is handling a high volume of requests, and there's limited compute available for your specific query.
Even if the demand for chips for training models goes away, the more AI use there is, the more demand there will be for inference compute.
And while most of the media says that Deepseek was able to build a competitive AI model for only $5.5 million, that appears to be incorrect based on expert opinions and Deepseek itself, according to Ray Wang, a Washington-based Analyst specializing in U.S.-China economic and technology Competition. 
"I think DeepSeek is actually quite explicit when it comes to the cost of training their model, as laid out in their Technical Paper of V3 and R1. The claim of 5.6 million for DeepSeek for their model is wrong as it was written like this in <a href="https://arxiv.org/html/2412.19437v1">their </a>technician paper," Wang told Benzinga.
The deeply technical paper explained that Deepseek's costs for training their model took only 2.788 million GPU hours. At $2 per GPU Hour for Nvidia's H800 chip (widely used for AI training), the cost is around $5.6 million. It doesn't account for various associated costs—from R&amp;D and talent to long-term operational costs, failed experiments, and general infrastructure costs like electricity.
This is all to say that the fear that Deepseek's innovations will crush the demand for chips in the upcoming AI revolution is vastly overstated. Deepseek proves you can get much more juice out of high-end AI chips than previously thought, making them more efficient and valuable. If anything, the demand for AI chips from companies like Nvidia, Broadcom, and ARM are only going to increase as AI companies figure out new and innovative uses for them.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43296460/dan-ives-says-chinese-startup-deepseeks-6-million-ai-development-assertion-is-likely-a-fictional-story">Dan Ives Says Chinese Startup DeepSeek&#8217;s $6 Million AI Development Assertion Is &#8216;Likely A Fictional Story&#8217;</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

ANALYSIS: Deepseek's AI Innovations Should Help Nvidia, Not Hurt It

Fed Chair Powell Declines To Comment On Trump Remarks On Interest Rates; Says Policy Is Meaningfully Less Restrictive Than When We Began Cuts; Are Focusing On Real Progress On Inflation, Or Weakness In Labor Market, Before Making Further Cuts; Our Policy Stance Is Very Well Calibrated To Balance Achievement Of Goals; Don't Need To See Further Weakening Of Labor Market To Achieve Inflation Goal

WIIM

AEHL

CARR

HOVR

HYZN

ICON

LBGJ

MVST

NCEW

OMEX

SGLY

SRFM

Shares of companies within the broader technology sector are trading lower after the Fed kept rates unchanged and noted that inflation remains somewhat elevated.

APPN

BILL

CDNS

CFLT

CRWD

CVLT

DOCU

ESTC

GTLB

MicroCloud Hologram Inc. - Ordinary Shares

HOLO

MNDY

PANW

PATH

PEGA

SNPS

Shares of software companies are trading lower after the Fed kept rates unchanged and noted that inflation remains somewhat elevated.

Fed Chair Powell Says Policy Well Positioned To Deal With Risks; Policy Is Well-Positioned To Deal With Risks, Uncertainties; Policy Framework Discussions Began This Meeting; Review Of Framework Will Wrap Up By Late Summer; Will Retain 2% Inflation Goal

Fed Chair Powell Says Unemployment Rate At 4.1% Remains Low; Total PCE Rose 2.6% In 12 Months To December, Core PCE Rose 2.8%; Risks To Achieving Goals Roughly In Balance; Attentive To Risks On Both Sides Of Mandate; We Do Not Need To Be In A Hurry To Adjust Policy Rate; We Do Not Need To Be In A Hurry To Adjust Policy Stance; Reducing Policy Restraint Too Fast Could Hinder Progress, Too Slowly Could Unduly Weaken Employment; We Are Not On Preset Course; Will Adjust Policy Stance To Promote Goals

Fed's Powell Says Economy Has Made Significant Progress Toward Goals; Inflation Has Moved Much Closer To Goal, Somewhat Elevated; 2024 GDP Looks To Have Risen Above 2%; Investment In Equipment Appears To Have Slowed; Labor Market Conditions Solid; Unemployment Rate Has Stabilized, Remains Low; Labor Market Conditions Broadly Balanced; Labor Market Not A Significant Source Of Inflation

Comments

Hartford Schroders Tax-Aware Bond ETF

News

Latest news for Hartford Schroders Tax-Aware Bond ETF (ARCA:HTAB)

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga