PNY has risen by 3% on the news of DeepSeek, while other technology stocks have declined.

The recent news shock of DeepSeek has caused the stock prices of many large technology companies to fall, while AAPL rose by 3.25% during the day.

Yesterday, experts were amazed at the performance of Chinese AI being as good as American chatbots like ChatGPT, Gemini and Llama, despite a lower cost and using much less powerful hardware...

The achievement of DeepSeek cannot be overrated

DeepSeek is an AI chat assistant developed in China that posted benchmarks indicating its performance was comparable to the world's best existing models. Experts quickly verified the statements, expressing surprise at seeing China achieve this result with a development cost lower than American models and running locally on modestly equipped personal computers.

Said that the scale of this achievement cannot be overrated.

The application quickly rose to #1 in Apple's App Store.

Technology stocks in the United States are falling

The biggest shock was seeing how China could develop such a powerful AI model when American export controls limited the number of NVIDIA graphics cards it could buy. We noted yesterday that OpenAI, Google and Anthropic use more than half a million of these, while DeepSeek could only get about 50,000 GPU – which means it provides results comparable to just 10% of processing power.

We previously thought there was a direct correlation between the number of Nvidia processors and AI performance, so proof to the contrary led to a decline in Nvidia stock prices.

The results caused a wave of shock on Monday's markets with NVIDIA losing more than $30 billion in market value, the largest drop recorded for any company, as investors reevaluated possible future investment in artificial intelligence hardware.

The valuation of other major American AI players like Microsoft and Meta has also decreased.

But AAPL rose by 3.25%

However, there was one exception to this trend: Apple's stock price increased by 3.25% during the day.

John Gruber of Daring Fireball suggests that one of the key reasons could be that it validates Apple's approach to running as much AI as possible on the device. Its own AI servers are the next resource, with ChatGPT as a default fallback.

There were doubts about the ability of Apple Intelligence to be powered by the company's own device processors rather than powerful servers doing the work. However, DeepSeek works on ordinary personal computers – which suggests that Apple's approach could be much more successful than previously imagined.

A significant increase in the hardware's inference capabilities with low RAM suggests strongly that consumer Apple devices will soon be capable of realizing many more AI functionalities locally.

Whether or not its impact on stock prices is reasonable, it is impossible to dispute the increased credibility of Apple's device-based processing strategy.

For more information on DeepSeek, please refer to our latest article 9to5Neuralpiece.

Photo by John Cameron on Unsplas