Why Software Stocks MongoDB, Salesforce, and GitLab Were Moving Higher

Core Viewpoint - The launch of the Chinese AI chatbot DeepSeek has led to a rally in software stocks, as investors anticipate reduced costs and improved efficiencies in AI infrastructure, benefiting companies that are developing their own AI platforms [1][11]. Group 1: Company Performances - MongoDB's stock rose by 8% following the news, as the company is leveraging AI in its NoSQL database software and has launched an AI Applications Program (MAAP) [2][3]. - Salesforce's stock increased by 4.65%, with the company pushing into AI through its Agentforce tool, although it has not yet significantly impacted its business [2][5]. - GitLab's stock surged by 8.09%, as it specializes in cloud-based DevSecOps and has introduced GitLab Duo, a suite of AI features for developers [2][7][8]. Group 2: AI Infrastructure and Market Dynamics - The technology behind DeepSeek is expected to accelerate AI demand for companies like MongoDB by enhancing efficiency and deployment speed [4]. - Despite the potential of AI, management at MongoDB indicated that it would not be a significant tailwind for fiscal 2025, viewing it as a future opportunity [4]. - The geopolitical landscape, including national security concerns regarding Chinese technology, may impact the adoption of AI chatbots like DeepSeek, but American companies are likely to innovate and improve upon such technologies [10]. Group 3: Long-term Outlook - Over time, technology costs generally decrease, which is expected to benefit software companies like MongoDB, Salesforce, and GitLab as they capitalize on falling AI costs and improved efficiencies [11]. - The long-term prospects for these industry leaders remain positive as they adapt to the evolving AI landscape [11].