Apple is a 'winner' as DeepSeek reshuffled American tech stock leadership, according to Morgan Stanley.
sent a chill through the U.S. stock market Monday, initiating a massive selloff led by Nvidia and hitting billionaires where it hurts—their fortunes.Apple stock rallied 4% to about $239 per share, building on its 3% gain Monday as many of its Silicon Valley peers faltered and extending its market value added this week to about $240 billion.
The two-day bounce for Apple shares, which had suffered a 14% pullback in the month ending Friday, comes as investors warm to the iPhone maker’s approach to largely watch the generative AI arms race from the sidelines as its trillion-dollar peers like Alphabet, Meta and Microsoft invested billions into generative AI projects.
Apple emerges as a “relative winner” as DeepSeek shifted investor narratives on AI, wrote Morgan Stanley analysts led by Brian Nowak in a Tuesday note to clients, explaining Apple’s “AI ambitions are far more contained” than the other “magnificent seven” American tech leaders. Apple also stands to greatly benefit from any advancements from large-language models, like DeepSeek’s, as Apple “owns the most valuable consumer technology distribution platform that exists,” Nowak added.
Whether Apple stock’s “contained” generative AI ambitions were the result of financial discipline or inadequate innovation is up to interpretation, but Wall Street Journal columnist Joanna SternAfter heading into the week down $143 billion in the race with Nvidia for world’s most valuable company, Apple is now up $498 billion, a more than $640 billion two-day swing.Nvidia settles into a more than 5.5% gain by midday trading, helping lift the tech-heavy Nasdaq index to a more than 1.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
DeepSeek Panic Live Updates: Trump Calls AI Development ‘Positive’ Despite Tech Stock PlungeThe president spoke Monday afternoon about the new AI model that roiled the U.S. tech industry.
Read more »
DeepSeek vs. ChatGPT: Hands On With DeepSeek’s R1 ChatbotDeekSeek’s chatbot with the R1 model is a stunning release from the Chinese startup. While it’s an innovation in training efficiency, hallucinations still run rampant.
Read more »
China: AI’s Sputnik moment? A short Q and A on DeepSeekOn 20 January the Chinese start-up DeepSeek released its AI model DeepSeek-R1.
Read more »
DeepSeek Panic Live Updates: Nasdaq Suffers Worst Day Of 2025—As Ultra-Rich, Nvidia Lose Billions“The AI investment cycle may be overhyped,” posed analysts at JPMorgan.
Read more »
DeepSeek's AI Debut Triggers Market Panic, Billionaire Fortunes PlummetThe unveiling of DeepSeek's R1 AI model, a cost-effective competitor to OpenAI's ChatGPT, sent shockwaves through the U.S. stock market, leading to a massive selloff. Tech giants like Nvidia, Microsoft, and Tesla experienced significant losses, with billionaires like Larry Ellison and Jensen Huang seeing billions wiped off their net worth. DeepSeek's success raises concerns about the dominance of American tech behemoths in the AI market.
Read more »
DeepSeek's AI App Sparks Panic on Wall StreetA Chinese AI startup's rapid rise to the top of Apple's app store has sent shockwaves through Wall Street, raising concerns about China's progress in the field of artificial intelligence.
Read more »