DeepSeek: ASML boss says to expect 'more elephants in the room' to surprise markets

Core Viewpoint - The emergence of new competitors like China's DeepSeek in the semiconductor industry is a sign of opportunity, and advancements in AI models can help reduce costs, benefiting companies like ASML [1][2][4] Group 1: Market Dynamics - ASML's CEO indicated that the market should adapt to new entrants, as the semiconductor sector is ripe for competition due to high demand for AI-related technologies [1][2] - The demand for ASML's products is expected to increase primarily from AI applications rather than just training large language models [3] Group 2: AI and Cost Reduction - The CEO emphasized that for AI technology to reach mass adoption, the cost of AI chips must decrease significantly, making them accessible beyond just high-end users [3] - Any technology that contributes to cost reduction in AI will enhance market opportunities, a trend observed over the past several decades [4] Group 3: Competitive Landscape - The launch of DeepSeek has led to significant market valuation losses, highlighting the competitive pressures in the semiconductor space [4] - Analysts have drawn parallels between the semiconductor and electric vehicle sectors, questioning the necessity of high-end products when more affordable alternatives may suffice [4]