Core Viewpoint - The recent sell-off in AI stocks, particularly following news about the Chinese AI start-up DeepSeek, presents a potential buying opportunity for investors, especially in companies like Nebius Group [2][3][13] AI Industry Dynamics - DeepSeek has developed a competing large language model using outdated Nvidia processors, raising concerns about the future demand for Nvidia's latest GPUs [2] - The panic selling in the tech sector is driven by fears that demand for Nvidia's GPUs may stall, although big tech companies' comments suggest that while capital expenditure (capex) growth may slow, absolute spending will remain significant [4][11] Big Tech Insights - Microsoft reported decelerating growth in its Azure cloud business and indicated that its capex growth rate will be lower than in FY '25 [8] - Tesla has invested approximately 65 billion, maintaining a strong commitment to AI infrastructure despite the recent market turmoil [8] Nebius Group's Position - Nebius Group is closely linked to Nvidia, planning to establish a GPU cluster in Kansas City using Nvidia's Hopper GPUs and later incorporating the Blackwell architecture [9] - Nebius is also expanding data centers in Finland and Paris with a mix of Nvidia's H100, H200, and Blackwell GPUs, indicating strong demand for its services [9][12] - The stock performance of Nebius has mirrored Nvidia's decline, suggesting a potential opportunity for investors to buy at lower prices [10][13]
1 Data Center Stock to Buy on the DeepSeek Dip (Hint: It's Not Nvidia)