Bloomberg Surveillance Bloomberg Surveillance TV: January 27, 2025
Jan 27, 2025
Angelo Zino, Senior Equity Analyst at CFRA Research, shares his expertise on the unfolding dynamics of the tech market. He highlights the impact of China's DeepSeek AI model on U.S. valuations and discusses the urgent need for investors to reassess strategies amidst market volatility. The conversation delves into the competitive landscape between the U.S. and China in tech, the importance of transparent communication from firms like Meta, and the potential growth sectors for AI, such as healthcare and agriculture.
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Tech Valuations and Growth Potential
- Tech valuations aren't extreme, offering growth at a reasonable price, particularly within the 'MAG 5'.
- AI monetization potential isn't fully embedded in valuations, but chip industry multiples might compress.
Long-Term AI Beneficiaries
- Cloud companies are expected to be the biggest beneficiaries of AI, along with select semi-names.
- Investment strategies will vary based on individual investor profiles and market dynamics.
DeepSeek's Impact on the Competitive Landscape
- DeepSeek's competitive model raises concerns about the pace of upgrades and spending for companies like NVIDIA.
- The U.S. government needs to address privacy and other storylines emerging from the intensifying AI competition.