Core Viewpoint - The market reaction to DeepSeek's AI chatbot announcement reflects a misunderstanding of the AI industry's technological and capital requirements, presenting potential investment opportunities for long-term investors [3][12]. Group 1: Market Reaction - DeepSeek's launch of a competitive chatbot led to a significant sell-off in Nvidia shares, which fell 17%, resulting in a loss of nearly 1 trillion in value as investors feared reduced demand for premium chips in future AI developments [2]. Group 2: Investment Opportunities - SoundHound AI's shares dropped 11.2% following DeepSeek's announcement, creating an attractive entry point for investors due to its unique technology and business model that differs from large language models [5][6]. - Applied Digital's stock fell 27.7%, but the company is positioned to address the critical power needs of next-generation data centers, with projections indicating a 36GW power shortfall by 2028 [7][8]. - Taiwan Semiconductor Manufacturing Company (TSMC) saw a 13.3% decline in shares, yet it maintains a 65% market share in global foundry revenue and is essential for both AI development and broader semiconductor innovation [9][10][11]. Group 3: Long-term Perspectives - The current market pullback offers compelling entry points across various technology segments, focusing on companies that provide unique value to the AI ecosystem, such as SoundHound, Applied Digital, and TSMC [12][13].
3 Artificial Intelligence (AI) Stocks I'm Buying on the Dip