We're proud to share that Armina Rosenberg was recently featured on ABC's The Business, where she discussed DeepSeek’s efficiency gains and what this could mean for AI stocks.
On Nvidia, Rosenberg noted that while DeepSeek delivers efficiency, it trades off some sophistication. High-end models like OpenAI’s o3 still require significant compute power, an area where Nvidia dominates. With global capacity for compute still constrained, she expects sustained demand to support Nvidia despite recent share price swings.
Investors are watching earnings from Tesla, Microsoft, and Apple for capital expenditure signals, she said. While efficiency gains could imply lower spending, Meta recently raised its capex forecast to US$60–65 billion and Microsoft softly guided to US$80 billion, suggesting ongoing investment. Rosenberg does not expect major pullbacks in infrastructure spending.
She agreed with JP Morgan research that suggested the recent tech sell-off could be healthy for the market. Valuations, particularly for the “Magnificent Seven,” had run ahead of themselves, she explained, and the pullback creates opportunities to buy AI names at more reasonable prices. She also sees potential for broader market participation, including AI-linked software and power infrastructure stocks, as the next phase of AI growth unfolds.
To watch the interview, click the link below.