Which US-listed Chinese Stocks and ETFs Are Poised to Benefit from DeepSeek's Rise?

At the dawn of 2025, China's homegrown large-scale AI model, DeepSeek, has sent shockwaves through the global technology market.

Developed by a young Chinese team, this AI powerhouse has taken the global center stage upon its debut, featuring low-cost, high-performance, and open-source characteristics. Some suggest that, with these advantages, DeepSeek has triggered market fluctuations, potentially prompting global investors to re-evaluate the technological potential of Chinese tech enterprises in the AI race.

A recent report from Goldman Sachs points out that DeepSeek's emergence signals a significant shift in the AI industry - from the hardware infrastructure layer to the software application layer. This trend not only challenges the “American exceptionalism” but also opens new opportunities for the diversified development of the global market, particularly for Chinese tech stocks.

For investors eyeing opportunities in US-listed Chinese tech stocks and related ETFs, DeepSeek's emergence presents a compelling narrative.

Other major financial institutions also share this optimistic outlook on DeepSeek. Morgan Stanley remarks that this model has achieved comparable performance to the GPT model at a much lower training cost, which may have a far-reaching impact on China's data center and software industries. For data centers, in the short term, if large-scale tech companies adopt a technology path similar to DeepSeek's, it may lead to a reduction in AI model training-related demands. While in the long run, low-cost models may drive the growth of inference demands. Due to the cost reduction, it may bring a selectively small-scale positive influence on the software industry.