• Tech firms generally reported solid financial results or provided optimistic guidance

• DeepSeek continues to be a major talking point this earnings season, but most tech leaders (maybe except NVIDIA’s Huang) remain upbeat and seek opportunities

DeepSeek’s rapid rise has become what everybody around the globe talks about during this Chinese New Year. The Chinese-based AI has challenged America’s market lead and raised concerns, from AI sector performance to geopolitical issues (we have discussed this in Wednesday’s newsletter).

Currently, DeepSeek ranks first in the top free downloaded apps in Apple’s app store 😮. While users are celebrating, it has also raised concerns in the market about its potential impact.

DeepSeek's low go-to-market cost has already disrupted the current AI market landscape and may have longer lasting impact to the performance of major US tech stocks. In particular, over the past three years, the seven giants of the US stock market have contributed about 53% of the 29% rise in the S&P 500 index.

Under such a backdrop, this earnings season conveys much significance as we might be standing at the crossroads of the current AI frenzy.

This week, 🔵 Meta, 🟢 Microsoft, 🔴 Tesla, and 🍎 Apple have released their reports! Let's take a look at their performance in 2024 and discuss the potential impact of DeepSeek on their future.

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