Latest / Best of Business / Andrew Curtayne: Milford Asset Management expert on stocks bouncing back following DeepSeek debacle

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Andrew Curtayne: Milford Asset Management expert on stocks bouncing back following DeepSeek debacle · Best of Business

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  Speaker 1: You're listening to a podcast from News Talk zed B.
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  Speaker 2: Let's go to Andrew Curtaine, Milford Asset Management. Andrew, Good evening.
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  Speaker 3: Hi, Right, how are you?
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  Speaker 1: Yeah?
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  Speaker 2: Really well, thanks, good to have you on the show.
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  Speaker 2: Tech stocks the kind of cooring back half their losses today.
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  Speaker 3: Yeah, that's right. We had a one point five percent
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  Speaker 3: rally in the Nasdaq, which is against the three percent
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  Speaker 3: full yesterday. What's what's sort of going on today is
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  Speaker 3: people starting to learn a little bit more about this
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  Speaker 3: Chinese company, Deep Seek, which is an AIA model company
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  Speaker 3: and came up yesterday announced and it had models almost
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  Speaker 3: as good as Chat GBT, sort of the leading model player.
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  Speaker 3: But people now started to learn that, you know, maybe
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  Speaker 3: this is actually good for the AI industry. Maybe this
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  Speaker 3: is good for the overall market because if you've got
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  Speaker 3: sort of fast improvements and AI model efficiencies, that means
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  Speaker 3: everyone's going to be able to access generative AI earlier
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  Speaker 3: and at a lower cost points. So so really the
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  Speaker 3: market's starting to consider is this a positive thing?
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  Speaker 2: Who's most affected by that? And I'm talking negative here,
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  Speaker 2: Who's most affected by this are the tech firms.
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  Speaker 3: Yeah, we think the big loser is the unlisted company
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  Speaker 3: open Ai. This is a company that owns chet GBT.
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  Speaker 3: It's sort of considered the model or the AI model
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  Speaker 3: leader at the moment in the world. And deep Seek
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  Speaker 3: is now showing that with you know, actually a lot
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  Speaker 3: lot lower cost people talking about between ten to twenty
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  Speaker 3: times lower cost. Is built a model which is which
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  Speaker 3: is almost as good or as good as chat GPT.
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  Speaker 3: So they're sitting their loser, they'll be they'll be panicking
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  Speaker 3: at the moment and trying to sort of work out
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  Speaker 3: what to do the next Probably the next biggest loser
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  Speaker 3: or the or the company that say has got a
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  Speaker 3: higher risk level now is Nividia. So Nividia benefits from
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  Speaker 3: selling a lot of high performance chips to companies like
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  Speaker 3: open Ai. Now, if you've just made models more efficient,
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  Speaker 3: you don't necessarily need as many of these chips. Is
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  Speaker 3: let's say, the risk that people might not be buying
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  Speaker 3: as many of these chips from Niberdia has gone higher.
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  Speaker 3: We'll get a bit more color from this, and when
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  Speaker 3: we have Microsoft and Meta results reporting tomorrow morning, and
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  Speaker 3: they should talk a little bit about sort about look
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  Speaker 3: for Capex, which basically means how many chips are they
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  Speaker 3: going to buy from niberdy.
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  Speaker 2: It's interesting because what Donald Trump's reaction has been is like, well,
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  Speaker 2: this is great for competition. We should have been on
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  Speaker 2: the ball with this. China is actually doing something right here,
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  Speaker 2: and I guess they'll now be looking at deep Seak
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  Speaker 2: as they did with TikTok for national security concerns.
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  Speaker 3: That's right. There's actually announcement overnight from the White House
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  Speaker 3: who came out and said that the National Security Council
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  Speaker 3: is reviewing the implications of deep Seek. And they've also said,
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  Speaker 3: and Trump's been saying this the last couple of days,
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  Speaker 3: that it's a wake up call to the American AI industry.
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  Speaker 3: So put this in context. Trump is really pro American
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  Speaker 3: AI leadership. He wants America to dominate the AI industry.
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  Speaker 3: So he's going to do everything he can to make
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  Speaker 3: sure America maintains this leadership.
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  Speaker 2: And here at home, the only real big mover was Infantil.
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  Speaker 3: The Invito was down four percent yesterday, down I think
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  Speaker 3: another one and a half percent or so today. The
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  Speaker 3: reason for that is in Fortoul's largest investment is a
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  Speaker 3: data center company called CDC, So yeah, same sort of
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  Speaker 3: theory with Nividia having high levels of risk, but maybe
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  Speaker 3: there's going to be less growth and data centers overcoming years,
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  Speaker 3: but you know, it's hard to tell us early stages.
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  Speaker 3: CDC sort of very good business and he's doing well,
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  Speaker 3: so the market's kind of racked in first and probably
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  Speaker 3: digestive information.
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  Speaker 2: Good on it. Great to have you on the show, Andrew.
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  Speaker 2: Andrew Curtaine, Milford Asset Management.
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