Understanding the Market | Chip stocks generally under pressure, Hua Hong Semiconductor down over 3%, SMIC down over 2%
Chip stocks are generally under pressure, with Hua Hong Semiconductor falling 3.31% to HKD 23.35, and SMIC dropping 2.66% to HKD 40.2. The market is paying attention to the DeepSeek-R1 model, which has a very low cost and may affect AI chip demand expectations. The query cost of the DeepSeek model is only USD 0.14, far lower than OpenAI's USD 7.50, and analysts believe this may weaken market demand for AI chips. Nvidia in the US stock market fell over 3% last Friday
According to Zhitong Finance APP, chip stocks were generally under pressure in the morning session. As of the time of publication, Hua Hong Semiconductor (01347) fell 3.31% to HKD 23.35; SMIC (00981) dropped 2.66% to HKD 40.2; and Shanghai Fudan (01385) decreased 0.89% to HKD 15.52.
On the news front, the DeepSeek-R1 model has attracted market attention, as it outperformed leading American AI companies such as OpenAI, Meta, and Anthropic in third-party benchmark tests. Notably, the cost of this large model is extremely low. What truly sets DeepSeek R1 apart is its cost—or rather, its low cost. The query cost for this model is only $0.14 per million tokens, while OpenAI's cost is $7.50, making it 98% cheaper. CITIC Securities pointed out that the smaller parameter size of the DeepSeek model compared to the GPT-4 model also means lower inference costs, and the reduction in inference costs will be a precursor to the widespread adoption of AI applications.
Additionally, some analysts believe that the success of R1 may weaken market expectations for AI chip demand. This is because DeepSeek seems to have built a groundbreaking AI model at an extremely low cost without the need for cutting-edge chips. This raises questions about the actual utility of the hundreds of billions of dollars in capital expenditures invested in the industry. In the U.S. stock market, NVIDIA fell over 3% last Friday