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Broadcom (NASDAQ:AVGO) 株価情報, 空売り情報

Broadcom

Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.

Broadcom Inc

In the midst of <a href="https://www.benzinga.com/topic/artificial-intelligence">AI&#8217;s rapid transformation</a>, BofA Securities analyst Vivek Arya sees a significant opportunity for NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>).
These companies are positioned at the heart of what Arya refers to as AI&#8217;s &#8220;Sputnik moment,&#8221; drawing an analogy to the Cold War era when the U.S. ramped up its efforts after the Soviet Union's surprise launch of Sputnik into space.
In this context, DeepSeek's rise in AI is seen as a catalyst for an even bigger wave of investment and BofA's analyst believes the hyperscalers and semiconductor companies will reap the rewards.
<h1 class="wp-block-heading">&#8220;DeepSeek: More Evolutionary Than Revolutionary&#8221; – But A Wake-Up Call For AI Investment</h1>
Arya is not overly impressed by DeepSeek's software contributions, as they are more about &#8220;evolutionary&#8221; progress rather than a &#8220;revolutionary&#8221; shift in AI. Still, the implications for the semiconductor space are clear. While &#8220;DeepSeek&#8217;s contributions are noteworthy,&#8221; they don&#8217;t represent a drastic change in course for the industry. 
However, they do accelerate AI capex investments, especially in &#8220;AI compute TAM toward $500bn+&#8221; over the next several years.
For Nvidia, Broadcom and Marvell, the timing couldn't be better.
These companies are already in a prime position, supplying essential hardware for AI infrastructure. Arya maintains a Buy rating on all three, emphasizing that the &#8220;rising tide should benefit all&#8221; as the AI compute market expands significantly.
Read Also: <a href="https://www.benzinga.com/tech/25/01/43302711/nvidia-hardest-hit-among-mag-7-stocks-by-deepseek-and-this-stock-ranked-second" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Nvidia Hardest Hit Among Mag 7 Stocks By DeepSeek, Poll Shows — And This Stock Ranked Second</a>
<h1 class="wp-block-heading">The Role of Hyperscalers, AI Hardware</h1>
One of the core insights Arya highlights is that the U.S. hyperscalers (tech giants like Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google, and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) will continue to drive much of the AI spending in the coming years. These companies will push toward &#8220;artificial general intelligence (AGI)&#8221; and broader enterprise use cases. The key to their success will be investing not only in &#8220;software&#8221; but also in &#8220;advanced hardware.&#8221;
This is where Nvidia, Broadcom, and Marvell come in, offering both the hardware capabilities and adaptability to meet the ever-evolving needs of AI workloads.
Arya forecasts the total AI compute market to &#8220;double towards $500bn+&#8221; by 2028, a growth driven by the need for large-scale model training, AI inference, and cloud infrastructure upgrades. As the race for AI dominance continues, &#8220;U.S. hyperscalers&#8221; will remain at the forefront, driving the bulk of this spending.
<h1 class="wp-block-heading">&#8216;Rising Tide Should Benefit All&#8217;</h1>
Nvidia, Broadcom and Marvell are all expected to benefit from this surge in demand. With DeepSeek&#8217;s AI software optimization now part of the broader landscape, it's clear that the hardware side of the equation — &#8220;ASIC versus general purpose GPU&#8221; — will continue to evolve.
Custom ASICs (like those from Broadcom and Marvell) offer cost efficiencies, but &#8220;merchant GPU (NVDA) could prove more adaptable to rapidly changing compute and model mix.&#8221;
For investors, the message is clear: These companies are well-positioned to capitalize on the growing AI infrastructure market. With AI compute TAM expected to rise to &#8220;$500bn+&#8221;, BofA sees the current downturn in the sector as an &#8220;enhanced Buy opportunity.&#8221;
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43304027/deepseek-selloff-is-a-correction-not-start-of-sustained-bear-market-goldman-sachs">DeepSeek Selloff Is A Correction, Not Start Of &#8216;Sustained Bear Market&#8217;: Goldman Sachs</a></li>
</ul>
Photo: Shutterstock

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NVDA

Why Nvidia, Broadcom, Marvell Are This Analyst's Top AI Bets In 'Sputnik Moment'

The U.S. markets have been in a frenzy over the past few days thanks to a new AI model from <a href="https://www.benzinga.com/25/01/43302340/deepseeks-ai-breakthrough-microsoft-poised-to-benefit-but-oracle-faces-cloud-growth-challenges">Chinese company Deepseek.</a> 
The market reaction has been challenging for chipmakers and semiconductors companies like&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) ,&nbsp;Advanced Micro Devices Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>),&nbsp;Arm Holdings&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), and others.
Nvidia experienced a historic drop in its stock price, plummeting nearly 17% and erasing over $589 billion in market capitalization—the largest single-day market cap loss for any company in U.S. history. Broadcom also saw a significant decline, with shares falling approximately 17%, while AMD's stock price dropped by 4.89%. ARM faced a decline of about 8% on Monday, contributing to a broader selloff across the semiconductor industry.
Despite the buzz around DeepSeek's latest model, R1, the news is largely positive for chipmakers like Nvidia. The market sell-off appears unwarranted and presents a potential long-term buying opportunity for investors.
Deepseek is a secretive AI company based in China, backed by a parent quant fund called High-Flyer. The company's whole thesis is to build Artificial General Intelligence (AGI) and open-source it for general use. While they've been building models and AI technology for a few years, they only recently captured the interest of the American press.
The company made headlines for a few reasons: 1) the press misreported that Deepseek trained a reasoning AI model for roughly $5.6 million, 2) investors felt like the fact that Deepseek was able to build a competitive AI model for so cheap implied that the demand for semiconductor chips used for AI, like the ones Nvidia sells, would be lower in the long run.
In fact, most of the news from Deepseek shows that semiconductors and chips will only get more valuable over time. Chinese companies are already having difficulty keeping up with chip demand after US sanctions prevented advanced chips for AI from being sold to China. Deepseek founder Liang Wenfeng said that the biggest limitation for his company is the availability of high-end AI chips. "Money has never been the problem for us; bans on shipments of advanced chips are the problem," he said, <a href="https://www.chinatalk.media/p/deepseek-ceo-interview-with-chinas">according</a> to ChinaTalk.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43304027/deepseek-selloff-is-a-correction-not-start-of-sustained-bear-market-goldman-sachs">DeepSeek Selloff Is A Correction, Not Start Of &#8216;Sustained Bear Market&#8217;: Goldman Sachs</a>
AI chips were traditionally used to train large language models and to give them knowledge of all the info on the Internet. But that was a while ago. Today, AI companies mainly use chips for inference—the computing required to generate answers or outputs for users in real-time.
For instance, when you use tools like ChatGPT or Claude, the responses you receive are powered by inference compute. If the answers are slow, it's often because the system is handling a high volume of requests, and there's limited compute available for your specific query.
Even if the demand for chips for training models goes away, the more AI use there is, the more demand there will be for inference compute.
And while most of the media says that Deepseek was able to build a competitive AI model for only $5.5 million, that appears to be incorrect based on expert opinions and Deepseek itself, according to Ray Wang, a Washington-based Analyst specializing in U.S.-China economic and technology Competition. 
"I think DeepSeek is actually quite explicit when it comes to the cost of training their model, as laid out in their Technical Paper of V3 and R1. The claim of 5.6 million for DeepSeek for their model is wrong as it was written like this in <a href="https://arxiv.org/html/2412.19437v1">their </a>technician paper," Wang told Benzinga.
The deeply technical paper explained that Deepseek's costs for training their model took only 2.788 million GPU hours. At $2 per GPU Hour for Nvidia's H800 chip (widely used for AI training), the cost is around $5.6 million. It doesn't account for various associated costs—from R&amp;D and talent to long-term operational costs, failed experiments, and general infrastructure costs like electricity.
This is all to say that the fear that Deepseek's innovations will crush the demand for chips in the upcoming AI revolution is vastly overstated. Deepseek proves you can get much more juice out of high-end AI chips than previously thought, making them more efficient and valuable. If anything, the demand for AI chips from companies like Nvidia, Broadcom, and ARM are only going to increase as AI companies figure out new and innovative uses for them.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43296460/dan-ives-says-chinese-startup-deepseeks-6-million-ai-development-assertion-is-likely-a-fictional-story">Dan Ives Says Chinese Startup DeepSeek&#8217;s $6 Million AI Development Assertion Is &#8216;Likely A Fictional Story&#8217;</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

ANALYSIS: Deepseek's AI Innovations Should Help Nvidia, Not Hurt It

Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) announced <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/g43266690/broadcom-delivers-industrys-first-quantum-resistant-network-encryption-enabling-real-time-ransomwa" rel="noreferrer noopener">Emulex Secure Fibre Channel Host Bus Adapters (HBA)</a> on Wednesday. This cost-effective, easy-to-manage solution encrypts all data as it moves between servers and storage.
The cost of ransomware attacks continues to rise, with attacks in 2024 costing an average of $5.37 million per attack.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43110913/apples-iphone-dependence-remains-but-services-wearables-offer-growth-potential-analyst" rel="noreferrer noopener">Apple&#8217;s iPhone Dependence Remains, But Services, Wearables Offer Growth Potential: Analyst</a>
Upcoming generative AI and quantum computers magnify the risk if data is not encrypted at all points in the data center, including the network.
To address these cybersecurity issues, governments have responded with mandates that require enterprises to modernize their IT infrastructures with post-quantum cryptographic encryption algorithms and zero-trust architecture.
Today, data centers can deploy application encryption or network encryption to protect their data.
Network encryption offers several advantages over application-based encryption, including preserving storage array services.
Network encryption enables real-time ransomware detection, while application-based encryption hides ransomware attacks.
Reportedly, <a target="_blank" href="https://www.benzinga.com/news/24/10/41325429/chinese-researchers-use-quantum-computers-to-reportedly-crack-rsa-encryption-raising-alarms-in-cyber" rel="noreferrer noopener">quantum computers can</a> threaten data security and privacy for various enterprises.
Broadcom stock surged over 70% in the last 12 months, joining Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) in the&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/43191472/broadcom-powers-solidigms-high-capacity-ssds-key-driver-for-ai-and-data-intensive-growth" rel="noreferrer noopener">trillion-dollar market cap</a> club in 2024.
Needham&#8217;s N. Quinn Bolton projected upside for Broadcom from growth in XPUs.
JPMorgan&#8217;s Harlan Sur expects Broadcom <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43266292/broadcom-marvell-could-thrive-from-deepseeks-ai-breakthrough" target="_blank" rel="noreferrer noopener">to gain from</a> DeepSeek&#8217;s emergence as hyperscalers and cloud providers continue to push for greater AI capabilities, with cost and power performance becoming critical differentiators.
Investors can gain exposure to Broadcom through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>).
Price Actions:&nbsp;AVGO stock traded higher by 1.86% at $211.22 premarket at the last check on Wednesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/43127416/anthropic-gains-big-with-google-backing-aiming-for-60-billion-valuation-and-surging-ai-revenue" target="_blank" rel="noreferrer noopener">Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue</a></li>
</ul>
Photo: Shutterstock

News

Broadcom Launches Secure Fibre Channel HBA, Boosting Data Encryption To Combat Rising Cyber Threats

Jim Cramer took aim at panic sellers Tuesday as major tech stocks recovered from a sharp decline triggered by Chinese artificial intelligence startup DeepSeek&#8216;s market entrance, with NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) leading the rebound with an 8.82% gain.
What Happened: &#8220;The shoot first learn later crew really got hosed today,&#8221; CNBC&#8217;s Cramer wrote on X, following Monday&#8217;s tech sector selloff that <a href="https://www.benzinga.com/markets/equities/25/01/43221806/nvidia-amd-broadcom-smci-tsmc-and-other-tech-giants-lead-monday-pre-market-selloff-as-nasdaq-100-futures-plummet-over-650-points-amid-reports-of-chinese-ai-startup-deepseek-overtaking-chatgpt">erased nearly $600 billion </a>from Nvidia&#8217;s market value amid concerns over DeepSeek&#8217;s claims of matching OpenAI&#8217;s performance at lower costs.
The phrase &#8220;shoot first, learn later&#8221; originates from the idiom &#8220;shoot first, ask questions later,&#8221; implying a hasty or impulsive action, often criticized in financial contexts for lacking due diligence.<a href="https://usdictionary.com/idioms/shoot-first-ask-questions-later/" target="_blank" rel="noreferrer noopener"></a>
The recovery saw Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) surge 5.25% and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) climb 2.57%, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>, as market sentiment shifted away from initial panic over DeepSeek&#8217;s potential disruption of the AI chip market.
Fundstrat Global Advisors&#8216; head of research Tom Lee characterized Monday&#8217;s selloff as &#8220;an overreaction&#8221; during CNBC&#8217;s &#8220;Closing Bell,&#8221; drawing parallels to Nvidia&#8217;s March 2020 decline that proved to be a <a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">strategic entry point for investors</a>.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The shoot first learn later crew really got hosed today
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1884357707634778187?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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See Also: <a href="https://www.benzinga.com/25/01/43294364/apple-surprises-iphone-users-by-teaming-up-with-spacex-and-t-mobile-to-bring-starlink-satellite-texting-heres-what-you-need-to-know-about-the-new-feature">Apple Surprises Users With Starlink Beta, Teams Up With Elon Musk&#8217;s SpaceX And T-Mobile To Bring Satellite Texting For iPhone Users In iOS 18.3</a>
Why It Matters: The market response has raised questions about <a href="https://www.benzinga.com/25/01/43266135/jim-cramer-squashes-deepseek-hype-warns-of-ai-sputnik-moment-as-investor-frenzy-and-inferiority-complex-vs-china-grips-market">U.S.-China AI competition</a>. &#8220;The sudden emergence of DeepSeek is a Sputnik-like moment for the U.S. and potentially undermines U.S. AI exceptionalism, but we see yesterday&#8217;s panic selling to be overdramatic,&#8221; Appreciate CEO Subho Moulik told Benzinga.
Adding complexity to the narrative, billionaire investor Bill Ackman questioned whether DeepSeek&#8217;s hedge fund affiliate, High-Flyer, potentially profited from the <a href="https://www.benzinga.com/markets/equities/25/01/43293842/bill-ackman-questions-whether-deepseek-ais-hedge-fund-affiliate-profited-from-nvidias-sell-off-a-fortune-could-have-been-made">selloff through options trading</a>. The Chinese startup emerged from High-Flyer, an $8 billion quantitative hedge fund co-founded by Liang Wenfeng.
OpenAI CEO Sam Altman acknowledged DeepSeek&#8217;s R1 as &#8220;an impressive model,&#8221; while <a href="https://www.benzinga.com/markets/equities/25/01/43256425/nvidia-says-deepseek-an-illustration-of-how-new-ai-models-can-be-created-while-being-export-control-compliant-amid-600-billion-market-value-plunge">Nvidia defended its position</a>, stating that DeepSeek&#8217;s operations still &#8220;requires significant numbers of Nvidia [chips] and high-performance networking.&#8221;
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/25/01/43293715/cathie-wood-dumps-tesla-stock-ahead-of-q4-earnings-ark-invest-loads-up-on-amazon">Cathie Wood Dumps Tesla Stock Ahead Of Q4 Earnings, Ark Invest Loads Up On Amazon</a></li>
</ul>
Image Via Shutterstock 
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Equities

Markets

Jim Cramer Says The 'Shoot First Learn Later' Crowd Got 'Hosed' As Nvidia And Other Tech Stocks Stage Recovery After DeepSeek Turmoil

Synaptics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SYNA#NASDAQ">SYNA</a>) shares are rising in extended trading Tuesday after the company signed a <a href="https://www.benzinga.com/pressreleases/25/01/g43286953/synaptics-accelerates-edge-ai-strategy-with-new-broadcom-agreement">licensing agreement with Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</a>.
What Happened: After the market close on Tuesday, Synaptics announced it&#8217;s accelerating its Edge <a href="http://benzinga.com/topic/ai">AI</a> strategy through a definitive licensing agreement with Broadcom.
The agreement includes Wi-Fi&nbsp;8, ultra-wideband (UWB), Wi-Fi 7, advanced Bluetooth and GPS/GNSS products and technology for IoT and the Android ecosystem.
&#8220;Our wireless technology and capabilities are cornerstones of our success in IoT markets,&#8221; said Michael Hurlston, president and CEO of Synaptics. 
&#8220;We are now developing this expertise to enable ecosystems with centralized control and seamless connectivity to a rapidly growing array of Edge AI devices. Our platform history, proven track record, and strategy uniquely position us to integrate Broadcom&#8217;s technology and fully deliver on the potential of IoT connectivity.&#8221;
Check This Out: <a href="https://www.benzinga.com/general/restaurants/25/01/43288533/starbucks-q1-earnings-revenue-beat-eps-beat-memberships-up-1-positive-response-to-turnaround-efforts">Starbucks Q1 Earnings: Revenue Beat, EPS Beat, Memberships Up 1%, &#8216;Positive Response&#8217; To Turnaround Efforts</a>
Synaptics said the deal is expected to add&nbsp;at least $40 million in annualized sales. The company also expects the transaction to be immediately accretive to adjusted earnings per share. 
The all-cash transaction is expected to close on Jan. 30. Financing details were not provided, but Synaptics said it will provide more information on the transaction when it reports <a href="https://www.benzinga.com/calendars/earnings">second-quarter earnings</a> on Feb. 6. 
Analysts currently expect Synaptics to report earnings of 86 cents per share and revenue of $265.14 million for the second quarter, according to <a href="http://pro.benzinga.com">Benzinga Pro</a> estimates.
SYNA Price Action: Synaptics shares were up 5.13% in after-hours, trading at $84.66 at the time of publication Tuesday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
This illustration was generated using artificial intelligence via Midjourney.

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Synaptics Stock Climbs On Broadcom Deal Focused On Edge AI

China's DeepSeek headwind continues to impact the broader technology sector, particularly enterprises <a href="https://www.benzinga.com/topic/artificial-intelligence">related to artificial intelligence</a>, such as Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>). 
Rivaling the capabilities of American counterparts at a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43239042/magnificent-seven-broadcom-lose-nearly-900-billion-in-value-as-deepseek-sparks-ai-carnage-why-this-expert-is-still-bullish-on-us-tech">fraction of the cost</a>, the latest machine intelligence model potentially signals increased competition in AI hardware and chip designs. Should Chinese companies establish a foothold in this area, Broadcom's stock is vulnerable.
The existential threat cannot be emphasized enough. Much of the reason why Broadcom has been such a dominant performer over recent years ties directly to its <a href="https://www.benzinga.com/quote/AVGO/earnings">financial strengths</a>. For one thing, the tech giant consistently beats ever-rising per-share earnings targets. Second, its revenue tallies — while not always beating estimates — remain impressive. However, DeepSeek could potentially undo all this hard work, thus underscoring anxieties.
It really comes down to the print. On Monday, Broadcom and the group of tech stocks known as The Magnificent Seven saw nearly $900 billion in market value erased within the first half-hour of trading. If Chinese AI competitors continue to muscle their way into the market, U.S. firms may lose their dominance and subsequently, their pricing power. Notably, Broadcom&#8217;s stock is up only modestly on Tuesday afternoon.
To be sure, not all analysts see doom and gloom ahead. For example, JPMorgan's Harlan Sur refuses to hit the panic button. Instead, the market expert points to history, where <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43266292/broadcom-marvell-could-thrive-from-deepseeks-ai-breakthrough">efficiency improvements in computing have driven more demand</a>, not less.
Historical trends also bode well for Broadcom — but there is a possible twist to consider.
<h2 class="wp-block-heading">Pricing Behaviors Favor Broadcom</h2>
Over the past five years, Broadcom — even accounting for Monday's collapse — is still up almost 600%. It's a remarkable performance, affirming the security's upward bias.
Specifically, on a week-to-week basis, a position entered at the beginning of the period has a nearly 58% chance of being profitable by the end of it. This dynamic extends to at least a four-week basis, where the odds of success rise to just over 67%. In other words, from a stochastic perspective — that is, devoid of any other context beyond the temporal — traders have a greater chance of being profitable than not.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28162413/AVGO-stock-pricing-projections-1024x576.jpg" alt="" class="wp-image-754505" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28162413/AVGO-stock-pricing-projections-1024x576.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28162413/AVGO-stock-pricing-projections-300x169.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28162413/AVGO-stock-pricing-projections-768x432.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28162413/AVGO-stock-pricing-projections.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image by author</figcaption></figure>
&nbsp;What's more, from a dynamic perspective — specifically accounting for DeepSeek's extreme-fear event — the circumstances for the stock become even more auspicious. Currently, the company is on pace to lose around 17% of value for the week. In the past five years, there have only been three instances when Broadcom lost double-digit percentage points, as follows:
<ul>
<li>During the business week beginning April 15, 2024, it lost 12.06%.</li>
<li>For the business week beginning Sep. 2, the stock dropped 14.58%.</li>
<li>Finally, in the five days starting from Nov. 11, the equity slipped 10.12%.</li>
</ul>
By the end of the fourth subsequent week following each of these extreme-fear events, Broadcom was in the black and significantly so. The median return following such events stands at a ridiculous 28.94%.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="604" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28142731/AVGO-stock-technical-chart-01282025-1024x604.jpg" alt="" class="wp-image-754281" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28142731/AVGO-stock-technical-chart-01282025-1024x604.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28142731/AVGO-stock-technical-chart-01282025-300x177.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28142731/AVGO-stock-technical-chart-01282025-768x453.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28142731/AVGO-stock-technical-chart-01282025.jpg 1028w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image by TradingView</figcaption></figure>
So, what's the risk in buying the Broadcom discount? In the technical charts, Broadcom appears to be in the middle of forming a pattern somewhat reminiscent of a <a href="https://www.benzinga.com/money/forex-head-and-shoulders-strategy">head and shoulders</a>. 
It's not a standard bearish formation, to be completely upfront. However, with Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) also printing a <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43249347/nvda-stock-discount-but-consider-critical-caveat">similar-looking pattern</a>, it's a risk factor to be cognizant of.
<h2 class="wp-block-heading">Tempting Trades Available for Aggressive Speculators</h2>
Undoubtedly, bidding up securities that have suffered double-digit losses is always a risky affair. Further, the looming dark clouds of a potential head-and-shoulders pattern means that at the very least, traders must be vigilant. Nevertheless, for aggressive speculators, opportunities abound in Broadcom.
First up, Broadcom historically tends to see a significant move higher in the first week following an extreme-fear event. Admittedly, it's tricky to model the impact of DeepSeek because it happened on a Monday as opposed to an entire week. Typically, the median return for a first-week extreme-fear response stands at 16.99%. Cutting this projected return by half and applying it to an estimated per-share price of $204 yields an end-of-Friday target of $221.
The most battle-hardened speculators may consider the 210/220 <a href="https://www.benzinga.com/money/bull-spread">bull call spread</a> for the options chain expiring Jan. 31. For traders to collect the maximum payout (which stands at over 415% at time of writing), Broadcom must reach or exceed the short strike price of $220.
Next, Broadcom stock tends to see a significant upside in the fourth week following an extreme fear event. Based on historical data, it's possible that Broadcom could rise by nearly 29% by the close of Feb. 21. By cutting this target by half and applying it to the estimated $204 per-share price, a forecast of $233.58 materializes.
Adventurous traders may consider the 220/230 bull call spread for the options chain expiring Feb. 21.Broadcom stock must at least hit the $230 short strike price to collect the full payout, which currently clocks in at nearly 363%.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/01/43285246/teslas-q4-earnings-looms-can-the-stock-keep-its-rally-alive">Tesla&#8217;s Q4 Earnings Looms: Can The Stock Keep Its Rally Alive?</a></li>
</ul>
Image: Shutterstock

Options

Events

Global

Options Corner: Broadcom's Discount Entices But Watch For Stormy Clouds Ahead

Synaptics Signs Definitive Licensing Agreement With Broadcom; Financial Terms Not Disclosed

Morgan Stanley analyst Joseph Moore maintains Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) with a Overweight and lowers the price target from $265 to $246.

Price Target

Morgan Stanley Maintains Overweight on Broadcom, Lowers Price Target to $246

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>NVDA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/31/25</td>
<td>$125.00</td>
<td>$40.0K</td>
<td>53.7K</td>
<td>158.0K</td>
</tr>
<tr>
<td>AMD</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/31/25</td>
<td>$115.00</td>
<td>$30.9K</td>
<td>3.1K</td>
<td>13.5K</td>
</tr>
<tr>
<td>AAPL</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/31/25</td>
<td>$240.00</td>
<td>$91.9K</td>
<td>7.5K</td>
<td>10.2K</td>
</tr>
<tr>
<td>MSFT</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/31/25</td>
<td>$450.00</td>
<td>$41.8K</td>
<td>11.3K</td>
<td>6.6K</td>
</tr>
<tr>
<td>AVGO</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/21/25</td>
<td>$210.00</td>
<td>$25.5K</td>
<td>3.0K</td>
<td>5.7K</td>
</tr>
<tr>
<td>SMCI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/14/25</td>
<td>$20.00</td>
<td>$64.1K</td>
<td>692</td>
<td>5.5K</td>
</tr>
<tr>
<td>MSTR</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/31/25</td>
<td>$350.00</td>
<td>$38.5K</td>
<td>2.9K</td>
<td>3.6K</td>
</tr>
<tr>
<td>SNOW</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>03/21/25</td>
<td>$200.00</td>
<td>$105.0K</td>
<td>8.7K</td>
<td>2.9K</td>
</tr>
<tr>
<td>ORCL</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/31/25</td>
<td>$160.00</td>
<td>$25.2K</td>
<td>1.6K</td>
<td>2.6K</td>
</tr>
<tr>
<td>PLTR</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/21/25</td>
<td>$75.00</td>
<td>$32.3K</td>
<td>12.3K</td>
<td>1.8K</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding NVDA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), we observe a call option sweep with bullish sentiment. It expires in 3 day(s) on January 31, 2025. Parties traded 100 contract(s) at a $125.00 strike. This particular call needed to be split into 14 different trades to become filled. The total cost received by the writing party (or parties) was $40.0K, with a price of $400.0 per contract. There were 53720 open contracts at this strike prior to today, and today 158006 contract(s) were bought and sold. 
• For AMD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), we notice a call option sweep that happens to be bullish, expiring in 3 day(s) on January 31, 2025. This event was a transfer of 150 contract(s) at a $115.00 strike. This particular call needed to be split into 19 different trades to become filled. The total cost received by the writing party (or parties) was $30.9K, with a price of $206.0 per contract. There were 3136 open contracts at this strike prior to today, and today 13568 contract(s) were bought and sold. 
• For AAPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), we notice a put option sweep that happens to be bearish, expiring in 3 day(s) on January 31, 2025. This event was a transfer of 152 contract(s) at a $240.00 strike. This particular put needed to be split into 10 different trades to become filled. The total cost received by the writing party (or parties) was $91.9K, with a price of $605.0 per contract. There were 7526 open contracts at this strike prior to today, and today 10242 contract(s) were bought and sold. 
• For MSFT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), we notice a call option sweep that happens to be bullish, expiring in 3 day(s) on January 31, 2025. This event was a transfer of 59 contract(s) at a $450.00 strike. This particular call needed to be split into 11 different trades to become filled. The total cost received by the writing party (or parties) was $41.8K, with a price of $710.0 per contract. There were 11311 open contracts at this strike prior to today, and today 6615 contract(s) were bought and sold. 
• For AVGO (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), we notice a call option sweep that happens to be bullish, expiring in 24 day(s) on February 21, 2025. This event was a transfer of 31 contract(s) at a $210.00 strike. This particular call needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $25.5K, with a price of $825.0 per contract. There were 3085 open contracts at this strike prior to today, and today 5780 contract(s) were bought and sold. 
• Regarding SMCI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), we observe a put option sweep with bullish sentiment. It expires in 17 day(s) on February 14, 2025. Parties traded 1000 contract(s) at a $20.00 strike. This particular put needed to be split into 18 different trades to become filled. The total cost received by the writing party (or parties) was $64.1K, with a price of $64.0 per contract. There were 692 open contracts at this strike prior to today, and today 5556 contract(s) were bought and sold. 
• Regarding MSTR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), we observe a call option trade with bullish sentiment. It expires in 3 day(s) on January 31, 2025. Parties traded 50 contract(s) at a $350.00 strike. The total cost received by the writing party (or parties) was $38.5K, with a price of $770.0 per contract. There were 2969 open contracts at this strike prior to today, and today 3649 contract(s) were bought and sold. 
• Regarding SNOW (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>), we observe a call option trade with bullish sentiment. It expires in 52 day(s) on March 21, 2025. Parties traded 100 contract(s) at a $200.00 strike. The total cost received by the writing party (or parties) was $105.0K, with a price of $1050.0 per contract. There were 8730 open contracts at this strike prior to today, and today 2961 contract(s) were bought and sold. 
• For ORCL (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), we notice a call option sweep that happens to be bullish, expiring in 3 day(s) on January 31, 2025. This event was a transfer of 50 contract(s) at a $160.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $25.2K, with a price of $505.0 per contract. There were 1698 open contracts at this strike prior to today, and today 2695 contract(s) were bought and sold. 
• Regarding PLTR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>), we observe a put option sweep with bullish sentiment. It expires in 24 day(s) on February 21, 2025. Parties traded 68 contract(s) at a $75.00 strike. This particular put needed to be split into 50 different trades to become filled. The total cost received by the writing party (or parties) was $32.3K, with a price of $475.0 per contract. There were 12336 open contracts at this strike prior to today, and today 1807 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

AAPL

MSTR

ORCL

PLTR

SMCI

SNOW

10 Information Technology Stocks Whale Activity In Today's Session

The artificial intelligence boom that has powered tech stocks for over a year is facing fresh scrutiny after DeepSeek, a Chinese AI firm, unveiled a model that could challenge the capital-intensive spending narrative driving <a href="https://www.benzinga.com/markets/equities/25/01/43261206/nvidia-broadcom-gain-over-5-as-tech-giants-rebound-after-monday-sell-off-whats-going-on">the U.S. AI industry.</a> 
Investors are questioning whether the staggering sums poured into AI infrastructure, exceeding $500 billion in recent announcements from major U.S. tech firms, will effectively generate the anticipated returns.
According to a note from Goldman Sachs shared Tuesday, analyst Eric Sheridan said DeepSeek's R1 model has triggered market concerns over "levels of spend, returns on spend, and the sustainability of current trend lines" in AI investment.
<h3 class="wp-block-heading">AI Stocks Face Pressure</h3>
Investors are now grappling with a critical question: If effective AI models can be built at significantly lower costs, does this diminish the competitive edge of firms investing heavily in GPUs, networking equipment, and data centers? 
The uncertainty has weighed on semiconductor stocks, which saw a knee-jerk selloff on Monday following the news.
DeepSeek's R1 model, which builds on open-source architectures like Meta Platforms Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Llama and Alibaba Group Holding Ltd.'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) Qwen, has demonstrated strong reasoning capabilities while reportedly costing just $5.6 million to train.
By contrast, some of the most advanced AI models from U.S. companies require billions in computing power and proprietary datasets to develop.
Sheridan said, "DeepSeek's reported training cost likely does not represent the fully loaded expense of developing its models," as the firm appears to have leveraged existing open-source frameworks built on significantly higher infrastructure spending. 
He added that the lack of transparency around DeepSeek's hardware and data sources adds another layer of complexity for investors.
Nonetheless, the emergence of a competitive model at lower cost has raised the question of whether companies like Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) can sustain their current AI-driven valuation multiples. 
"The market reaction is currently being driven by questions around the collective capital expenditures needed for the AI theme to scale," Sheridan said.
<h3 class="wp-block-heading">A Shift From Infrastructure To Applications</h3>
Goldman Sachs' analysis suggests that AI investments may soon shift from the infrastructure layer—dominated by semiconductor and cloud providers—to the &#8220;application layer,&#8221; where consumer and enterprise AI adoption could accelerate. 
Companies developing AI-powered assistants, automation tools, and enterprise solutions may see a greater share of AI-related revenues in the future.
"The next level of evolution in the AI theme is likely to shift from infrastructure to applications, as AI agents, enterprise use cases, and rising consumer utility take center stage,&#8221; Sheridan said. 
The note also highlights that AI assistants, such as Alphabet Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Gemini and OpenAI&#8217;s ChatGPT, are likely to play a central role in consumer interactions with AI over the next 12 to 18 months. 
The rising capabilities of these tools—such as booking reservations and browsing the web—are expected to shape how users engage with AI-powered services.
"DeepSeek's innovations reinforce our thesis that the application and platform layers will benefit as revenue moves away from the infrastructure layer,&#8221; Sheridan added.
<h3 class="wp-block-heading">What's Next for AI Investors?</h3>
The debate over AI spending efficiency is far from over, and the next major catalyst will likely come during fourth-quarter earnings season. Investors will be looking for tech executives to address whether AI investments are generating meaningful returns and how competition from lower-cost AI models may influence future spending.
Sheridan cautioned that the uncertainty surrounding DeepSeek's cost advantages may weigh on valuations for AI-related stocks until greater clarity emerges.
For now, the sector remains at an inflection point with DeepSeek challenging the status quo. The next phase may be defined not just by who spends the most, but by who spends the smartest.
Read now: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43254923/7-ai-infrastructure-stocks-plunge-over-20-outpace-semiconductor-rout-as-deepseek-upends-investment-landscape">7 AI Infrastructure Stocks Plunge Over 20%, Outpace Semiconductor Rout As DeepSeek Upends Investment Landscape</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Large Cap

BABA

DeepSeek's Low-Cost Model Reshapes AI Landscape: Experts Predict Shift To 'Application Layer'

DeepSeek's latest AI model, <a href="https://www.benzinga.com/markets/asia/25/01/43243584/deepseek-r1-vs-openai-what-consumers-need-to-know-about-ais-latest-challenger">R1, is making waves</a>—not just for its performance but for the existential questions it raises about AI chip demand. 
The company claims its training costs were a mere $5.6 million, a fraction of what frontier foundation models demand. 
Naturally, investors are wondering: if AI can be trained this efficiently, does that mean the industry&#8217;s chip-buying frenzy is about to cool off?
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43236579/chinas-deepseek-ai-rattles-tech-stocks">China&#8217;s DeepSeek AI Rattles Tech Stocks, Analyst Ives Says Market Plunge &#8216;Golden Buying Opportunity&#8217;</a>
<h2 class="wp-block-heading">Jevons Paradox Strikes Again</h2>
JPMorgan's Harlan Sur isn't hitting the panic button. Instead, he points to history—where efficiency gains in computing have paradoxically driven more demand, not less. 
From x86 virtualization in the 2000s to ARM Holdings PLC's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) dominance in mobile, every step forward in computing power has led to a proliferation of use cases that need more chips, not fewer. The same could happen here: DeepSeek's efficiency might not curb AI chip demand but rather accelerate the adoption of AI, pulling forward the need for high-performance semiconductors.
<h2 class="wp-block-heading">Custom Silicon Could Be the Winner</h2>
DeepSeek's low-cost efficiency doesn't just raise questions—it also opens opportunities. Sur believes that hyperscalers and cloud providers will keep pushing for greater AI capabilities, but they won't just rely on off-the-shelf GPUs. Custom-built ASICs—where companies like Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) thrive—could see an uptick as cost and power performance become critical differentiators.
Despite lingering uncertainties around DeepSeek's exact cost structure and reliance on open-source models, one thing remains clear: AI innovation never slows down—it only fuels further breakthroughs. 
Sur reiterates his bullish stance on Broadcom, Marvell, and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), emphasizing that the race for AI dominance is far from over. If history is any guide, this is just the beginning of the next wave of semiconductor demand.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/technicals/25/01/43231443/super-micro-stock-nosedives-as-deepseek-ai-threat-rattles-investors">Super Micro Stock Nosedives As DeepSeek AI Threat Rattles Investors</a></li>
</ul>
Photo: Shutterstock

Broadcom, Marvell Could Thrive From DeepSeek's AI Breakthrough, Analyst Predicts

CNBC's Jim Cramer in his latest X post alluded to the Chinese artificial intelligence startup DeepSeek's hype and sneered at the politicization of the development, comparing it to the 1957 Sputnik moment, when the Soviet Union launched the first artificial Earth satellite, triggering a Space Race.
What Happened: Cramer, in his post, indicated that the public discourse around AI advancements will inevitably become politicized, with accusations of falling behind and calls for increased government intervention.
The post implies that fear of losing out could drive investors to pour money into AI companies, even if they are skeptical of their true potential.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I fully expect our inferiority complex and a belief that Nvidia was all smoke and mirrors, will cause people to hit the bid, Nvidia and all the others. They have to, they fear &quot;sputnik.&quot; Yes, let&#39;s politicize the whole thing
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1884209444961280220?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
In another post, Cramer highlights the U.S. competition and a perceived "inferiority complex" concerning the People's Republic of China. According to him, investor satisfaction and belief in Deepseek could be wrong and it could be &#8220;hallucinating" or providing inaccurate information.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I am glad you all are satisfied with Deepseek. Can it be the next model? I think the thing is hallucinating like mad. I see the same thing i always see: our inferiority complex v. the PRC, how much smarter and better they are. Same old Same old, We are idiots they are smart&#8230;…
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1884203674110439523?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/25/01/43263070/deepseek-buzz-batters-big-tech-but-this-analyst-says-buy-the-dip-heres-a-list-of-top-five-semiconductor-etfs-with">DeepSeek Buzz Batters Big Tech But This Analyst Says &#8216;Buy The Dip:&#8217; Here&#8217;s Are Top 5 Semiconductor ETFs With The Lowest Expense Ratios That You Can Consider </a>
Why It Matters: DeepSeek&#8217;s cost-effective performance triggered a selloff in semiconductor stocks on Monday. Nvidia Corporation's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) led the declines by falling 17% on Monday, eroding $593 billion in <a href="https://x.com/charliebilello/status/1884009665597690125">market capitalization</a>. 
"To me, it's an overreaction," Fundstrat Global Advisors‘ head of research Tom Lee told CNBC's "Closing Bell," comparing the drop to Nvidia's March 2020 decline that proved to be a significant <a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">entry point</a> for investors.
Similarly, Subho Moulik, the founder and CEO of Appreciate told <a href="http://pro.benzinga.com">Benzinga</a>, "The sudden emergence of DeepSeek is a Sputnik-like moment for the U.S. and potentially undermines U.S. AI exceptionalism, but we see yesterday's panic selling to be overdramatic."
Moulik said, "It's not just Nvidia, the other semicaps that took a battering in the markets – Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) – can be an interesting buy on dip."
Price Action: Nvidia&#8217;s stock was up 2.48% in the premarket trading, whereas, the exchange-traded fund tracking Nasdaq 100, Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a> was up 0.25%.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/01/43259969/microsoft-ai-revenue-poised-to-surpass-10-billion-fueling-explosive-growth-says-piper-sandler-as-it-maintains-overweight-rating-on-msft">Microsoft&#8217;s AI Revenue Set To Surpass $10 Billion: Piper Sandler Maintains Overweight Rating </a></li>
</ul>
Image via Shutterstock

Jim Cramer Squashes DeepSeek Hype, Warns Of AI 'Sputnik Moment' Amid Investor Frenzy And US-China 'Inferiority Complex'

The emergence of DeepSeek, a Chinese artificial intelligence startup <a href="https://www.benzinga.com/25/01/43232316/deepseek-jitters-shatter-us-tech-stocks-wipe-out-12-trillion-on-wall-street-analyst-eyes-four-chinese-giants-set-to-benefit">rattled the markets</a> on Monday. However, as AI demand continues to rise many described the reaction to be "overdramatic" and suggested to "buy the dip". Here is a list of top semiconductor exchange-traded funds, with the lowest expense ratios that investors could consider. 
What Happened: As DeepSeek boasts of high performance at a significantly lower cost, semiconductor stocks which are the backbone of AI development, bore the brunt of the selloff.
"To me, it's an overreaction," Fundstrat Global Advisors‘ head of research Tom Lee <a href="https://www.cnbc.com/2025/01/27/tom-lee-calls-market-sell-off-overreaction-nvidia-falls-on-deepseek-news.html?taid=67980792a96d920001c44f58&amp;utm_campaign=trueanthem&amp;utm_medium=social&amp;utm_source=twitter%7Cmain">told </a>CNBC's "Closing Bell," comparing the drop to Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) March 2020 decline that proved to be a significant <a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">entry point</a> for investors.
Similarly, Subho Moulik, the founder and CEO of Appreciate said, "The sudden emergence of DeepSeek is a Sputnik-like moment for the U.S. and potentially undermines U.S. AI exceptionalism, but we see yesterday's panic selling to be overdramatic."
As Nvidia shares <a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">plunged</a> 17% on Monday, eroding $593 billion in <a href="https://x.com/charliebilello/status/1884009665597690125">market capitalization</a>, Moulik said, "It's not just Nvidia, the other semicaps that took a battering in the markets – Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) – can be an interesting buy on dip."
Investors could consider buying ETFs with a low expense ratio to "buy on dip." An expense ratio is a percentage that represents the annual cost of owning a fund or an ETF which is calculated by dividing a fund&#8217;s operating expenses by its net assets.
According to <a href="https://www.schwab.com/learn/story/etfs-how-much-do-they-really-cost#:~:text=Investors%20should%20consider%20the%20impact,significantly%20erode%20returns%20over%20time.">Charles Schwab</a>, &#8220;ETFs with lower expense ratios and lower trading costs typically offer better value to investors, because higher expense ratios and/or steeper trading costs may significantly erode returns over time.&#8221; 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>AUM (In Billion)</td>
<td>Expense Ratio</td>
<td>Six Month Returns</td>
</tr>
<tr>
<td>SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>)</td>
<td>$1.28</td>
<td>0.35%</td>
<td>-0.29%</td>
</tr>
<tr>
<td>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)</td>
<td>$23.60</td>
<td>0.35%</td>
<td>-1.17%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>)</td>
<td>$13.86</td>
<td>0.35%</td>
<td>-7.14%</td>
</tr>
<tr>
<td>First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>)</td>
<td>$1.32</td>
<td>0.60%</td>
<td>-9.11%</td>
</tr>
<tr>
<td>ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>)</td>
<td>$1.24</td>
<td>0.95%</td>
<td>-7.38%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: <a href="https://www.etf.com/topics/semiconductors">ETF.com</a> </figcaption></figure>
See Also: <a href="https://www.benzinga.com/25/01/43259969/microsoft-ai-revenue-poised-to-surpass-10-billion-fueling-explosive-growth-says-piper-sandler-as-it-maintains-overweight-rating-on-msft">Microsoft&#8217;s AI Revenue Set To Surpass $10 Billion: Piper Sandler Maintains Overweight Rating </a>
Why It Matters: According to Moulik, DeepSeek&#8217;s claim of lower training costs of $6 million vs ChatGPT&#8217;s $100 million plus, remains unverified. The Chinese firm's reliance on less-advanced Nvidia chips, due to U.S. chip export restrictions, could also hinder its ability to maintain a competitive edge in AI development.
Even if DeepSeek&#8217;s cost claims hold, it&#8217;s still positive for Big Tech, said Moulik, as AI extends beyond Large Language Models. Cost-effective LLM training allows U.S. companies to prioritize <a href="https://www.benzinga.com/markets/25/01/43222744/verizon-launches-ai-connect-as-mckinsey-predicts-that-60-70-of-ai-workload-will-shift-from-training-to-inferencing-by-2030">LLM inferencing</a> – the next stage. Inferencing involves applying pre-trained LLMs for real-world tasks, optimizing AI investments by shifting focus from costly training to scalable, practical applications, ultimately driving long-term growth.
"For industry leaders like Microsoft Corp. and Alphabet Inc., this means redirecting massive spending from training infrastructure to real-world applications such as search, customer service, and automation," added Moulik. Cloud servers like Amazon.com Inc.&#8217;s Amazon Web Service could benefit too.
Although the short-term will be bumpy, the long-term runway appears stable, added Moulik, "Unless DeepSeek drops another Chinese New Year gift to the world later&nbsp;this&nbsp;year.&#8221;
Read Next:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/43258090/gamestop-short-seller-wants-freedom-of-speech-for-millions-having-stock-market-conversations-questioning-sec-on-what-protects-honest-opinions">Gamestop Short Seller Wants Freedom Of Speech For &#8216;Millions&#8217; Having Stock Market Conversations, Questioning SEC On &#8216;What Protects Honest Opinions?&#8217;</a></li>
</ul>
Photo courtesy: Shutterstock

Sector ETFs

ETFs

FTXL

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

DeepSeek Buzz Batters Big Tech But This Analyst Says 'Buy The Dip:' Here's Are Top 5 Semiconductor ETFs With The Lowest Expense Ratios That You Can Consider

WIIM

INTC

Shares of US chip stocks are trading higher after President Donald Trump suggested he would put tariffs on imported chips. The sector may also be rebounding after falling on Monday amid AI competition concerns from China.

After Monday's dramatic crash, tech stocks made a solid recovery in Tuesday&#8217;s premarket. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) led the way, climbing 5.29% to $124.91, with Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) not far behind, gaining 4.82% to $211.87. Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) also posted modest gains of 1.90% and 1.87%, respectively, as the sector began to stabilize.
What Happened: The sell-off on Monday was triggered by news from Chinese AI startup DeepSeek, which unveiled a cost-efficient AI model that outperformed competitors like OpenAI and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) at a fraction of the cost.
This announcement rattled investors, sending Nvidia's stock into a historic plunge that wiped out nearly $600 billion in market value.
See Also:&nbsp;<a href="https://www.benzinga.com/25/01/43256073/jensen-huangs-biggest-fear-isnt-ai-competitionits-the-stage-why-public-speaking-terrifies-silicon-valleys-coolest-leaders-including-musk-zuckerberg-and-buffett" target="_blank" rel="noreferrer noopener">Jensen Huang's Biggest Fear Isn't AI Competition—It's Pre-Show Butterflies: How Silicon Valley's Coolest Leaders Like Mark Zuckerberg And Elon Musk Are Gripped With Stage Fright</a>
The tech recovery came after analysts were quick to call the <a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">market's reaction an overreach</a>. Analysts believe advancements like these could drive even more investment in AI infrastructure, pushing the industry closer to major milestones like artificial general intelligence.
Gene Munster of Deepwater Asset Management argued that the demand for AI infrastructure would only keep growing. Fundstrat's Tom Lee also sees the sell-off as&nbsp;<a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">an opportunity for investors</a>, comparing it to Nvidia&#8217;s March 2020 decline, which proved to be a significant entry point for investors.
Meanwhile,&nbsp;OpenAI&nbsp;CEO&nbsp;Sam Altman&nbsp;has&nbsp;<a href="https://www.benzinga.com/25/01/43259545/deepseeks-r1-is-impressive-but-openai-ceo-sam-altman-says-they-will-crush-it-with-much-better-models-looking-forward-to-bringing-you-all-agi-and-beyond">acknowledged the impressive performance</a>&nbsp;of DeepSeek&#8217;s R1 model, expressing enthusiasm about the competition and speaking about OpenAI&#8217;s plans to introduce even more advanced models in the future.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/01/43153571/openais-sam-altman-flip-flops-on-trump-as-500-billion-stargate-ai-project-is-announced-years-after-praising-reid-hoffman-for-stopping-his-re-election" target="_blank" rel="noreferrer noopener">OpenAI&#8217;s Sam Altman Flip Flops On Trump After $500 Billion Stargate AI Project, Says ‘I Wish I Had Done More Of My Own Thinking&#8217;</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image Via Shutterstock

Nvidia, Broadcom Gain Over 5% As Tech Giants Rebound After Monday Sell-Off: What's Going On?

A Chinese artificial intelligence startup&#8217;s rapid ascent in the AI space has sparked both security concerns and market ripples. DeepSeek, <a href="https://www.benzinga.com/tech/25/01/43223228/satya-nadella-said-we-should-take-development-out-of-china-very-very-seriously-now-deepseeks-r1-has-emerged-as-chatgpt-killer-outperforming-openai-with-50x-cheaper-prices-heres-more">which recently surpassed</a> OpenAI&#8216;s ChatGPT on Apple Inc.&#8216;s App Store, issued warnings about fake social media accounts impersonating its founder Liang Wenfeng.
&#8220;Again guys, this is not our Wenfeng,&#8221; posted Zizheng Pan, a DeepSeek researcher, on X, addressing fraudulent accounts mimicking the company&#8217;s leadership. The Hangzhou-based startup, founded in July 2023, maintains @deepseek_ai as its sole official X account.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">To prevent any potential harm, we reiterate that <a href="https://twitter.com/deepseek_ai?ref_src=twsrc%5Etfw">@deepseek_ai</a> is our sole official account on Twitter/X. Any accounts: &#8211; representing us &#8211; using identical avatars &#8211; using similar names are impersonations. Please stay vigilant to avoid being misled!
&mdash; DeepSeek (@deepseek_ai) <a href="https://twitter.com/deepseek_ai/status/1884103376868368589?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Again guys, this is not our Wenfeng. <a href="https://t.co/GybGGlmaQY">pic.twitter.com/GybGGlmaQY</a>
&mdash; Zizheng Pan (@zizhpan) <a href="https://twitter.com/zizhpan/status/1884081184420012046?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/markets/equities/25/01/43256425/nvidia-says-deepseek-an-illustration-of-how-new-ai-models-can-be-created-while-being-export-control-compliant-amid-600-billion-market-value-plunge">Nvidia Says DeepSeek An &#8216;Illustration&#8217; Of How New AI Models Can Be Created While Being Export-Control Compliant Amid $600 Billion Market Value Plunge</a>
DeepSeek&#8217;s R1 model has garnered attention for achieving comparable performance to leading AI models while using 97% less computing power. The company developed the system for<a href="https://www.benzinga.com/tech/25/01/43223228/satya-nadella-said-we-should-take-development-out-of-china-very-very-seriously-now-deepseeks-r1-has-emerged-as-chatgpt-killer-outperforming-openai-with-50x-cheaper-prices-heres-more"> under $6 million in just two months</a>, challenging industry assumptions about necessary resources for advanced AI development.
This efficiency has rattled tech investors, contributing to notable <a href="https://www.benzinga.com/markets/equities/25/01/43221806/nvidia-amd-broadcom-smci-tsmc-and-other-tech-giants-lead-monday-pre-market-selloff-as-nasdaq-100-futures-plummet-over-650-points-amid-reports-of-chinese-ai-startup-deepseek-overtaking-chatgpt">declines in semiconductor stocks</a>. NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) faced significant selling pressure as markets processed the implications of DeepSeek&#8217;s cost-effective approach to AI development.
The startup competes directly with Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) in the rapidly evolving AI space, offering its technology at reportedly 50 times lower prices than competitors.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43223228/satya-nadella-said-we-should-take-development-out-of-china-very-very-seriously-now-deepseeks-r1-has-emerged-as-chatgpt-killer-outperforming-openai-with-50x-cheaper-prices-heres-more">Satya Nadella Said &#8216;We Should Take Development Out Of China Very, Very Seriously.&#8217; Now, DeepSeek&#8217;s R1 Has Emerged As A ChatGPT Killer, Outperforming OpenAI With 50x Lower Costs: Here&#8217;s More</a></li>
</ul>
Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors

Startups

DeepSeek Flags Fake Founder's Account On X As Open-Source AI Model Surpasses OpenAI's ChatGPT On Apple Store

Monday&#8217;s trading session saw mixed results in the U.S. stock market. The S&amp;P 500 dropped by 1.5% to 6,012.28, shedding nearly 90 points, while the NASDAQ fell 3.07% to 19,341.83. On the other hand, the Dow managed to trade up by 0.65% to 44,713.58. 
These are the top stocks that gained the attention of retail traders and investors throughout the day:
Nvidia Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)
Nvidia shares fell by 16.86% to close at $118.58, with an intraday high and low of $128.40 and $116.70, respectively. The 52-week high and low stand at $153.13 and $60.70. The company&#8217;s shares took a hit after <a href="https://www.benzinga.com/25/01/43220297/nvidia-stock-slide-as-chinas-deepseek-ai-sparks-doubts-over-gpu-spending-frenzy-what-tech-experts-are-saying">China&#8217;s DeepSeek unveiled an AI model</a> that offers cutting-edge performance at a fraction of the cost, sparking doubts about the need for massive GPU investments.
Broadcom Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)
Broadcom shares dropped by 17.40% to $202.13, with an intraday high and low of $218.43 and $196.23, respectively. The 52-week high and low are $251.87 and $117.43. The company&#8217;s shares, along with other U.S. tech stocks,&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43239042/magnificent-seven-broadcom-lose-nearly-900-billion-in-value-as-deepseek-sparks-ai-carnage-why-this-expert-is-still-bullish-on-us-tech">plummeted due to concerns over lower-cost Chinese AI models</a>&nbsp;threatening America&#8217;s top tech giants.
Nebius Group N.V.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NBIS#NASDAQ">NBIS</a>)
Nebius Group shares fell by 37.44% to $26.08, with an intraday high and low of $33.59 and $24.41, respectively. The 52-week high and low are $43.66 and $14.11. The company&#8217;s shares&nbsp;<a href="https://www.benzinga.com/trading-ideas/movers/25/01/43253237/whats-going-on-with-nebius-group-stock-monday">traded lower amid weakness in AI stocks</a>&nbsp;due to concerns over competition from Chinese startup DeepSeek's new AI model.
Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>)
Taiwan Semiconductor shares fell by 13.33% to $192.31, with an intraday high and low of $207 and $187.67, respectively. The 52-week high and low are $226.40 and $112.61. The company <a href="https://www.benzinga.com/tech/25/01/43247387/taiwan-semiconductor-partners-with-mtr-to-tackle-carbon-emissions">partnered with MTR Carbon Capture</a> to supply a Polaris membrane carbon capture system to treat emissions from a Taiwan Semiconductor solvent incineration facility in Taiwan.
Tesla Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)
Tesla shares dropped by 2.32% to $397.15, with an intraday high and low of $406.69 and $389, respectively. The 52-week high and low are $488.54 and $138.80. The company&#8217;s shares <a href="https://www.benzinga.com/markets/equities/25/01/43219987/tesla-could-drop-over-13-due-to-trumps-potential-ev-tax-credit-cuts-fsd-and-delivery-concerns-says-gary-black">faced diverging forecasts for its 2025 delivery growth</a>, with Wall Street's expectations clashing with independent analysts' predictions amid uncertainty over new vehicle launches and potential policy changes.
Image via Shutterstock
Prepare for the day&#8217;s trading <a href="https://editorial.benzinga.com/wp-admin/Premarket%20Movers%20&amp;%20News">with top premarket movers and news</a> by Benzinga.
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

NBIS

TSLA

Nvidia, Broadcom, Nebius Group, Taiwan Semiconductor, And Tesla: Why These 5 Stocks Are On Investors' Radars Today

Exchange-traded funds, or ETFs, with leveraged exposure to chipmaker Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) <a href="https://www.benzinga.com/etfs">experienced a dramatic Monday</a> thanks to the debut of AI upstart DeepSeek. 
<ul>
<li>The GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) plunged 34.55% as of writing. </li>
<li>Graniteshares 2x Short NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVD#NASDAQ">NVD</a>), its leveraged inverse counterpart designed to profit from Nvidia&#8217;s losses, soared 34.69% at last check</li>
<li>The ProShares Ultra Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which holds more than 40% of its assets in Nvidia, dropped by more than 27% </li>
<li>More broadly, the Vanguard Information Technology Index Fund, where Nvidia is the second-largest holding at nearly 15% of the portfolio, shed 4.7%.</li>
<li>The VistaShares Artificial Intelligence Supercycle ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIS#NYSE">AIS</a>), which has only 3% of its assets in Nvidia but holds other AI stocks, lost 8.43%.</li>
</ul>
These ETFs offer the potential for amplified profits at the cost of higher-than-usual fees of around 1% and greater volatility. 
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43250480/nvidia-sinks-below-200-day-average-for-first-time-in-2-years-deepseek-technical-reset">Nvidia Sinks Below 200-Day Moving Average For First Time In 2 Years As DeepSeek Sparks Historic Technical Reset</a>
<h3 class="wp-block-heading">What Triggered The Selloff?</h3>
DeepSeek is the culprit. This <a href="https://www.benzinga.com/25/01/43232316/deepseek-jitters-shatter-us-tech-stocks-wipe-out-12-trillion-on-wall-street-analyst-eyes-four-chinese-giants-set-">Hangzhou, China-based AI startup</a> launched a new model that poses a challenge to U.S. competitors, including Nvidia's core business. 
DeepSeek's open-source AI model has already surpassed ChatGPT in downloads on Apple's app store, leaving the AI market in awe. Industry experts like venture capitalist Marc Andreessen called this moment a &#8220;Sputnik moment&#8221; for U.S. AI companies as this could be a ground-breaker in the AI space, reported Reuters.
The market's reaction was swift. Nvidia&#8217;s stock, a major player in the AI space, dropped nearly 17.65%, taking along semiconductor stocks like Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Marvell Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) in the ride south. 
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), which tracks semiconductor stocks, also plummeted by 8.39%, experiencing its worst day since the pandemic-led selloff in March 2020.
As fear spread, investors flocked to safe-haven assets like U.S. Treasuries, leading to yields on the 10-year note dipping to a one-month low.
See Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43244872/tech-stocks-tumble-on-ai-nightmare-nvidia-eyes-worst-day-since-march-2020-bitcoin">Tech Stocks Tumble On AI Nightmare, Nvidia Eyes Worst Day Since March 2020, Bitcoin Drops Below $100,000: What&#8217;s Driving Markets Monday?</a></li>
</ul>
Photo: Shutterstock

Broad U.S. Equity ETFs

NVDL

DeepSeek AI Model Sends Shockwaves Through Nvidia, Slams ETFs

A wild selloff rattled tech stocks on Monday, striking at the heart of AI optimism as China&#8217;s DeepSeek startup unveiled an open-source large language model platform that outperforms OpenAI&#8217;s ChatGPT at a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43239042/magnificent-seven-broadcom-lose-nearly-900-billion-in-value-as-deepseek-sparks-ai-carnage-why-this-expert-is-still-bullish-on-us-tech">fraction of the cost. </a>
The shockwave hit U.S. markets hard, raising fears over intensifying AI competition just as companies pour heavy investments into the new technology. 
The elite Magnificent Seven stocks collectively shed about $600 billion in market value, with Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) alone erasing $450 billion, or 15% of its valuation. The AI powerhouse is on track for its worst single-day loss since March 18, 2020.
The Nasdaq 100 tumbled 3%, eyeing its steepest drop since Dec. 18, when hawkish comments from Fed Chair Jerome Powell rattled markets. The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) plunged over 7%, also eyeing its worst session since the pandemic-driven selloff of March 2020.
Chipmakers took a beating, with Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) both crashing 17.5%, while Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) sank 11%.
As panic spread, investors sought refuge in safe-haven Treasury assets. Treasury yields slid, with the 10-year yield falling 7 basis points to a one-month low. The U.S. 10-Year Treasury Note ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UTEN#NASDAQ">UTEN</a>) rose 0.7%. 
The tech turmoil even bled into crypto markets, dragging Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) back below $99,000. The world's largest cryptocurrency lost $110 billion in market cap within hours as risk-off sentiment took hold.
<h3 class="wp-block-heading">Monday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>44,523.61</td>
<td>0.2%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,284.39</td>
<td>-1.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,994.21</td>
<td>-1.8%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,059.65</td>
<td>-3.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012725&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 1.9% to $596.73.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.2% higher to $445.05.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) dropped 3.4% to $511.88.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 1% to $226.47.</li>
<li>The&nbsp;Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, up 2.2%; the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) tumbled, down 5.3%.</li>
</ul>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
<ul>
<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) soared 6.5% in reaction to stronger-than-expected earnings. </li>
<li>SoFi Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>) plummeted 12% as a downbeat guidance darkened better-than-expected quarterly results. </li>
<li>Crypto-related stocks such as MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) and Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) fell by 7.8% and 9.6%, respectively. </li>
<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) rallied 3%, defying the broader tech selloff. </li>
</ul>
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Tech Stocks Tumble On AI Nightmare, Nvidia Eyes Worst Day Since March 2020, Bitcoin Drops Below $100,000: What's Driving Markets Monday?

Hedge funds have always been closely watched for cues on investment opportunities. Although their strategies can be complex, understanding the trends they're bullish on can offer important insights for retail investors. 
Siddharth Singhai, CIO of value-based global hedge fund IronHold Capital, recently shared his perspective on sectors worth watching, and how <a href="https://www.benzinga.com/etfs">ETFs can help investors</a> capitalize on these themes. 
From automobiles and homebuilding to mining and AI, here are some ETFs based on his insights:
<h1 class="wp-block-heading">Automobile Industry On Third Gear</h1>
One area drawing attention is the U.S. auto industry. With protectionist policies likely to intensify under the Trump administration, automakers such as General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), and Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) stand to benefit significantly, according to Singhai. 
Possible tariffs on Chinese electric vehicles could set the playing field for these companies, making the U.S. auto sector one to keep a close eye on. 
&#8220;We do anticipate a clear protectionism policy in place for U.S. auto, specifically the big three: General Motors, Ford and Stellantis. Simply because if the tariffs were not put in place against Chinese EVs, U.S. automakers would be at about a 30% to 40% cost disadvantage, which would essentially mean the end of U.S. auto as we know it,&#8221; said Singhai.
However, as a word of caution, he said that one should be wary of auto companies that might face trouble in the face of EV revolution. 
&#8220;We believe U.S. autos and U.S. auto parts suppliers, who have been hit badly due to the excess inventories prevailing in the U.S. auto industry in general, could be a good hunting ground, potentially. Although investors should be focused on auto suppliers that are probably not going to get disrupted by the EV transition,&#8221; Singhai said.
For investors, ETFs like the First Trust S-Network Future Vehicles &amp; Tech (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>) offer exposure to the expected surge in domestic automotive manufacturing. The ETF has an expense ratio of 0.7% and among its holdings are Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Ford, General Motors and Stellantis.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43236579/chinas-deepseek-ai-rattles-tech-stocks">China&#8217;s DeepSeek AI Rattles Tech Stocks, Analyst Ives Says Market Plunge &#8216;Golden Buying Opportunity&#8217;</a>
<h1 class="wp-block-heading">Home Building Industry In Focus</h1>
Homebuilders are another promising area, according to Singhai. Despite overvaluation concerns in the equity market, the housing sector continues to experience a significant supply-demand imbalance. Years of undersupply following the 2008 financial crisis created the opportunity for select homebuilding companies to thrive.
&#8220;U.S. market is extremely overvalued at the moment, and there are not that many sectors that could be happy hunting grounds for hedge funds or value investors like us. In general, homebuilders, some of them, seem to be still attractively positioned given the great imbalance between supply and demand, mainly because of years of undersupply post-Great Recession in 2008-&#8217;09. So we believe homebuilders, some of them, present very compelling opportunities,&#8221; Singhai noted.
Investors interested in this space might consider ETFs such as the iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>), which focuses on leading players in the sector, such as Builders Firstsource, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLDR#NYSE">BLDR</a>) and Lowes Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>). The expense ratio that this ETF carries is 0.39%.
<h1 class="wp-block-heading">Mining — Hidden Gems To Look For</h1>
Mining is another area that stands out. Many companies in this space, especially low-cost producers, are undervalued and largely overlooked by the market. These firms could see strong performance with a rebound in global demand for raw materials.
&#8220;Mining companies also seem to be hit badly and ignored by investors. You could find some really good mining companies that are the lowest cost producers in their respective industries that could prove to be high performers over the next two to three years,&#8221; Singhai noted from his expertise.
ETFs such as the SPDR S&amp;P Metals and Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>) invest in a range of mining companies and could be a good fit for investors looking to capture growth in this area. The ETF carries an expense ratio of 0.35% and holdings in Hecla Mining Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HL#NYSE">HL</a>) and Reliance Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RS#NYSE">RS</a>), among others.
<h1 class="wp-block-heading">AI Trends To Watch</h1>
Singhai also touched upon the continued interest in semiconductors and AI. While these industries are undeniably buzzing, he warns against impulsive investing. Many companies in this space are trading at lofty valuations that may not be sustainable. 
&#8220;I do foresee a lot of hedge funds diving right into semiconductors and AI stocks. I also believe more retail investors will seriously consider allocating capital to this particular sector moving forward as well. However, it is ripe with extreme bubble-like valuations. The marquee names in the AI industry are trading for as high as 20 to 50 times revenue, which to us seems excessive even given the promise of AI,&#8221; he said.
Singhai also added, &#8220;Not all AI companies can capture 50% of the market or even 30% of the market, and if they fail to do so, they cannot foreseeably justify their current valuations. This leads us to the ultimate conclusion that there will be a few big winners and many, many losers within the industry. As such, most AI companies do not deserve their expensive, hefty valuations.&#8221;
For those interested in exploring the AI-driven growth story, a diversified ETF like the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) offers exposure to leading players like NVDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Broadcom Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) while mitigating the risks of betting on individual stocks. And the cost of investing in this ETF is also reasonable at 0.35%.
All that said, Singhai emphasized the route of ETFs should be seen as tools for diversification and steady returns — not as a shortcut to mimicking hedge fund performance. It will be wise for retail investors to focus on sectors with solid fundamentals rather than on speculative trends.
See Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/new-etfs/25/01/43198940/how-foliobeyonds-innovative-fixed-income-etf-can-provide-low-risk-income-generation-in-volatile-tim">How FolioBeyond&#8217;s Innovative Fixed Income ETF Can Provide Low-Risk Income Generation In Volatile Times</a></li>
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Photo: Shutterstock

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