Latest news with #DeepSeekR2
Forbes
02-05-2025
- Business
- Forbes
Super Micro Stock: Proceed With Caution
Super Micro Computer stock (NASDAQ:SMCI) fell approximately 11% on Tuesday after the company released preliminary results for its March quarter that significantly underperformed expectations. The server manufacturer is now expecting revenue between $4.5 billion and $4.6 billion, a considerable drop from its previous guidance of $5 billion to $6 billion. Earnings per share are also anticipated to be well below predictions, ranging from $0.29 to $0.31 per share. Super Micro has blamed the miss on 'delayed customer platform decisions,' which resulted in some orders being postponed until the next quarter. However, the extent of the shortfall does raise apprehensions about broader demand trends and may indicate a potential loss of market share for Super Micro Computer to competitors like Dell Technologies. The U.S. economy contracted in the first quarter of this year, and the outlook seems increasingly difficult. President Donald Trump's suggested tariffs on major trading partners are starting to take effect, heightening the risk of renewed inflation. The AI sector could be particularly susceptible to budget reductions during an economic downturn, as AI investments are still unprofitable for most companies. Export restrictions might also exert further pressure on U.S.-based server manufacturers like Super Micro. There is a chance that after years of substantial investment in AI infrastructure, companies could begin to emphasize the efficiency of their code rather than strictly increasing computing power. (Related: Should DeepSeek R2 Worry Nvidia Investors?) Back in February, Super Micro anticipated that fiscal 2026 revenue might hit $40 billion, representing a 70% increase compared to FY'25. Nevertheless, these projections may be challenging to meet given the escalating macroeconomic challenges and the company's recent earnings setback. Currently, there are some positive aspects for Super Micro stock as well. Super Micro's server products are closely linked to Nvidia's GPU ecosystem, and with Nvidia increasing production of its new Blackwell chips, demand for SMCI's server platforms might improve. The company is also making strides into the direct-liquid-cooled (DLC) server market, recognized as a crucial technology for managing compute-intensive AI workloads. Additionally, the company's valuation remains appealing. SMCI is trading at approximately 13 times estimated earnings for 2025, which is significantly lower than the S&P 500's forward multiple of over 20 times. This valuation seems even more justifiable when considering the fact that revenue has grown at an annual rate of 74.5% over the past three years. That said, investors should be cautious. Super Micro has encountered considerable controversy over the past year, including claims of accounting irregularities, delays in SEC filings, and scrutiny from short-sellers. Some of these issues have subsided in recent months, following the company's recent submission of its financial statements. However, the latest earnings miss, combined with a patchy history of corporate governance, indicates that investors may need to tread carefully with SMCI stock. Investing in a single stock like SMCI carries risk. Conversely, the Trefis High Quality (HQ) Portfolio, which includes 30 stocks, has a history of comfortably outperforming the S&P 500 over the last 4 years. What accounts for this? As a collective, HQ Portfolio stocks have yielded better returns with less risk compared to the benchmark index, proving to be less volatile as seen in HQ Portfolio performance metrics.
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First Post
29-04-2025
- Business
- First Post
China's DeepSeek is ready with version 2. What to expect
Chinese media reports claim that DeepSeek R2 will be 97.3 per cent cheaper than OpenAI's GPT-4o model. The new version of the artificial intelligence model will completely rely on Huawei's Ascend 910B GPU cluster, signalling a total independence from American-made AI chips read more Globally, DeepSeek has faced increasing scrutiny since its release in January. Although the tool gained initial acclaim for its efficient open-source AI model, governments have raised red flags over its data practices. Image Credit: Reuters DeepSeek, the Chinese tech giant that turned around the US stock market a couple of months ago, is ready with an advanced model to be released this week. DeepSeek R2 will reportedly be cheaper and better, giving tough competition to ChatGPT's maker OpenAI. Chinese media reports claim that DeepSeek R2 will be 97.3 per cent cheaper than OpenAI's GPT-4o model. The new version of the artificial intelligence model will completely rely on Huawei's Ascend 910B GPU cluster, signalling a total independence from American-made AI chips. STORY CONTINUES BELOW THIS AD How will it be different? Market analysts noted on X that if the new DeepSeek model matches rival performance on global benchmarks, DeepSeek could position Huawei as the first major challenger to NVIDIA. The earlier model released by the Hangzhou-based AI startup had triggered a massive sell-off in US stock markets, erasing $1.5 trillion in value and causing sharp declines in the shares of tech giants such as NVIDIA, Alphabet, and Microsoft. DeepSeek is also planning to dethrone Meta in dominating the open-source AI category by making its own models free to use. This comes ahead of OpenAI's plan to release its first open-source model soon. DeepSeek R2 is expected to be similar in scale to OpenAI's largest model to date, GPT-4.5 (code-named Orion), which has 1.8 trillion parameters. In comparison, DeepSeek R2 is projected to feature 1.2 trillion parameters and will be trained on 5.2 petabytes of data. Alibaba joins the AI game China is readying itself to join the AI race. Earlier today, Tech giant Alibaba Group has joined the AI race after launching its artificial intelligence model Qwen 3, an upgraded version of its flagship model that is equipped with new hybrid reasoning capabilities. The Qwen3 series features two mixture-of-experts (MoE) models designed to compete with hybrid reasoning systems, recently launched by Anthropic and Google, a subsidiary of Alphabet. Earlier this year, Alibaba announced its full commitment to the AI race and, just weeks ago, released a new model from its Qwen 2.5 series capable of processing text, images, audio, and video. The model is efficient enough to run on smartphones and laptops, and in March, the company also introduced an updated version of its AI assistant, the Quark app.
Economic Times
29-04-2025
- Business
- Economic Times
China's DeepSeek ups AI stakes as R2 rumours fly fast
Live Events Amid tariff turfs, China is rumoured to advance its supremacy in artificial intelligence (AI) model race by releasing DeepSeek R2 , the second version of reasoning model which shook US stock markets in to some reports in the Chinese media, DeepSeek R2, expected to be released this week, will be 97.3% cheaper than OpenAI's GPT-4o model and 100% trained on Huawei's Ascend 910B GPU cluster, establishing China's independence from American AI chips. Here's a look at what it will mean for the AI ecosystemIf the model performs on a par with competitors on global benchmarks, DeepSeek could establish Huawei as the first serious competitor to NVIDIA, market watchers wrote on X. The previous model released by the Hangzhou, China-based AI startup had wiped off $1.5 trillion off US stock markets, tumbling stocks of tech giants like NVIDIA, Alphabet and Meta, which has been an open-source category leader until now is also expected to lose market share with DeepSeek also offering its models free-to-access. This comes at a time when OpenAI is also looking to release its first open-source model terms of size, DeepSeek R2 will be comparable to OpenAI's largest model so far GPT 4.5 code-named Orion with 1.8 trillion parameters. Meanwhile, DeepSeek R2 is expected to have 1.2 trillion parameters trained on 5.2 petabytes of training pricing for consuming the model through APIs is expected to be $0.7 per million input tokens and $0.27 per million output tokens, which is 97.3% cheaper than OpenAI.
Time of India
29-04-2025
- Business
- Time of India
China's DeepSeek ups AI stakes as R2 rumours fly fast
Amid tariff turfs, China is rumoured to advance its supremacy in artificial intelligence (AI) model race by releasing DeepSeek R2 , the second version of reasoning model which shook US stock markets in February. #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" According to some reports in the Chinese media, DeepSeek R2, expected to be released this week, will be 97.3% cheaper than OpenAI's GPT-4o model and 100% trained on Huawei's Ascend 910B GPU cluster, establishing China's independence from American AI chips. Here's a look at what it will mean for the AI ecosystem What will be the impact? If the model performs on a par with competitors on global benchmarks, DeepSeek could establish Huawei as the first serious competitor to NVIDIA, market watchers wrote on X. The previous model released by the Hangzhou, China-based AI startup had wiped off $1.5 trillion off US stock markets, tumbling stocks of tech giants like NVIDIA, Alphabet and Microsoft. Meanwhile, Meta, which has been an open-source category leader until now is also expected to lose market share with DeepSeek also offering its models free-to-access. This comes at a time when OpenAI is also looking to release its first open-source model soon. Live Events How big is the model? In terms of size, DeepSeek R2 will be comparable to OpenAI's largest model so far GPT 4.5 code-named Orion with 1.8 trillion parameters. Meanwhile, DeepSeek R2 is expected to have 1.2 trillion parameters trained on 5.2 petabytes of training data. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The pricing for consuming the model through APIs is expected to be $0.7 per million input tokens and $0.27 per million output tokens, which is 97.3% cheaper than OpenAI.
