How DeepSeek's AI Model Impacts AVGO Stock?

Group 1 - Broadcom Inc. experienced a significant stock decline of over 17% due to the competitive threat posed by DeepSeek's efficient AI model [1][3] - DeepSeek's open-source DeepSeek-R1 model reportedly outperforms major models like OpenAI's o1 and Meta's Llama while being more cost-effective and requiring fewer computing resources [2][3] - Broadcom's fiscal 2024 revenue reached $51.6 billion, marking a 44$12.2 billion [4] Group 2 - The rise of DeepSeek could negatively impact Broadcom's sales of networking products, particularly if the market for premium AI chips declines [5] - Investors have raised AVGO's valuation multiple based on expected AI contributions, but concerns about slower sales growth due to DeepSeek's emergence have arisen [6] - Broadcom's stock has shown strong performance, with an 84% increase since the start of 2024, outperforming the S&P 500 index, which is up 26% [6]