2025 Hong Kong's latest AI investment guide
[DeepSeek Stock] Investment Opportunities from AI
DeepSeek's arrival this year has undoubtedly been the focus of the entire investment industry, and during the holidays, writers have also covered various analyses and arguments. In the first article of the Year of the Snake, we will share with you the investment opportunities and the transformation of the AI industry with DeepSeek.
Before you understand the opportunities that DeepSeek brings, it is important to remember which generative AI is reliable at the moment. DeepSeek has emerged mainly because the cost of training AI has varied greatly. Below is the analytical data from the site “semianalysis” from the AI research site for reference.
The above chart shows the training cost of different AI models, from the chart above it can be seen that the training cost of DeepSeek-v3 is much lower than Meta's Llama and OpenAI's GPT. The above data is the training cost required per 1 millionTokens.
If we want to understand why the cost is lower, let's first know what a token is. Simply put, in the field of AI, token is usually referred to as the smallest unit in the word processing process, which can represent the amount of data from the AI training process.
DeepSeek's much lower cost per 1 millionTokens is the main reason why Llama and GPT differ from previous training models, creating more advanced training models. OpenAI's o1 model uses “test time scaling”, meaning reasoning, testing, and verification step by step to find the best answer, which will involve a large number of Tokens. DeepSeek is a Post Training model that simply collects a lot of data during the training process to make inferences. Naturally, fewer TOKENS are required, resulting in lower costs.
GENERATIVE AI HAS ALWAYS REQUIRED MASSIVE DATA TO TRAIN, AND LAST YEAR THE MARKET HAD A STRONG NEED FOR COMPUTING, SUCH AS NVDA'S BLACKWELL BECOMING A CITY HOT-BUB. But beginning in the middle of last year, the industry also faced the problem of insufficient AI ROI, i.e. concerns about excessive costs resulting in an unsatisfactory return on investment. High-throughput super data centers are energy-consuming and costly problems for businesses.
As DeepSeek's model emerged, the overall cost concerns were alleviated, and even the market expected more businesses to invest in AI development, potentially further fueling the development of AI as a whole. So let's be clear, DeepSeek's technological breakthrough isn't about changing the AI industry, it's just that the investment theme may be transformed by the computing power of the past, into AI applications, i.e. from hardware to software as Wall Street currently says. But investors should not be too pessimistic about computing, because with new model technologies combined with the strongest computing power, there may be some new breakthroughs in the entire AI development by 2025.
US Stock Market|DeepSeek Stock Investment Opportunities
On the AI investment track in US stocks, stay focused on some companies with high scientific research capabilities or the best option. The simple thing is not to follow blindly. The emergence of DeepSeek could heat up the development of AI, and some companies that do not have a clear advantage in the AI competition may face higher pressures. On the contrary, the pace of development may increase even further after some of the formerly leading companies learn new models and technologies. So it's right to keep an eye on strong stocks.
Deepseek considers the impact of Deepseek on the US equity market, and the authors believe it is worth paying attention to relevant stocks in the following areas:
Software Application Shares:$Palantir(PLTR.US)$ , $Applovin(APP.US)$ , $Meta Platforms(META.US)$
Operational power: $NVIDIA(NVDA.US)$ 、$Broadcom(AVGO.US)$ 、$Marvell Technology(MRVL.US)$
China Market|DeepSeek Stock Investment Opportunities
In the Hong Kong equity market, investment opportunities will be deeper as the market begins to reassess the trajectory and positioning of SMEs in AI development. The valuation of Hong Kong stocks has been at a low level, mainly due to market concerns about the limitations of computing power constraining the development of the AI industry. As DeepSeek's model emerged, foreign investors also reassessed the investment value of Chinese enterprises.
In the process, the overall technology stocks will benefit, which also explains why in the near future $Hang Seng TECH Index(800700.HK)$ The performance is far more than $Hang Seng Index(800000.HK)$ 。
Deepseek Beneficial Technology Shares
In terms of DeepSeek related stock options, the authors believe that a more stable option is $TENCENT(00700.HK)$ und $BABA-W(09988.HK)$ Mainly because they themselves have the ability and sufficient capital to develop AI models, and foreign investors are more likely to benefit from China's tech stocks.
KEY RESISTANCE LEVEL: 102.7 YUAN
Support Position: $94.75
Benefiting from the DeepSeek craze, $BABA-W(09988.HK)$The maximum has risen by more than 40% this month, with the official announcement of $Apple(AAPL.US)$ Collaborate to develop Chinese iPhone AI capabilities, wonder if there is still potential to continue to rise? Check it out now!
KEY RESISTANCE LEVEL: 436 YUAN
Support Position: 407 yuan
DeepSeek Beneficial Cloud Services Stocks
In addition, as the market again expects the development of the Mainland AI industry to accelerate, some cloud service companies are more likely to be in demand for capital, and advanced investors can pay more attention. eg $KINGSOFT CLOUD(03896.HK)$ $Kingsoft Cloud(KC.US)$ 、 $GDS-SW(09698.HK)$ $GDS Holdings(GDS.US)$ ， $LENOVO GROUP(00992.HK)$ etc.
Resistance level: 8.8 yuan
Support Level: 7.5$
Resistance level: 27 yuan
Support Position: $23.4
Resistance level: 11.1 yuan
Support Position: 10.5 yuan
Risks of AI development in China
DeepSeek's emergence is undoubtedly a major boon for the entire Chinese market, and the market has highlighted the spotlight on AI investments in the country. However, investors should also watch out for the risks of a trade war between China and the US. In addition to the risks of tariffs, it is also worth considering whether the United States will expand chip exports, such as whether the H20 chips used by DeepSeek will be hit, etc. This factor will be deeper than the impact of tariffs.
Author Information
Chief Analyst of Futu Securities Liang
(The author is a licensee of the Securities and Exchange Commission and its affiliates do not have any financial interest in the Proposed Share Issuer)
