One day’s storm? What is behind the direction change in markets

One announcement by the DEEPSEEK’s Chinese Chinese company has been able to inspire the global capital market. However, the market seems to have stabilized when global stock markets are stable. Were the events last night in a momentary jolt that allowed investors to improve positions or is it the beginning of a crisis? Globes makes order.

How do the markets respond?

After the global stock market erased about $ 1.3 trillion last night, this morning it seems that the sun is back to illuminate trading. The future contracts on the NASDAC rose by 0.5% this morning and the S&P 500 index added about 0.3% in trade. Even in Europe the Stox 600 index increases by 0.7%. The local stock exchange trades lightly.

In the opening of Wall Street, the metrics are traded in volatility with a tendency to slight descents, but far from yesterday’s red gates.

Alongside the stock markets, the rest of the markets mark recovery: In the US debt market, government bond returns are slightly rising after they have sharply dive last night. In the crypto market, the price of the Bitcoin costs lightly and trades around $ 102,000 per currency when he dropped a price of $ 99,000 last night. Easily strengthened in front of the rest of the world, and at the same time, the fear index that jumped last nights decimally decreases at this time.

The chip shares that have been dived last night in the dozens of contracts are also traded in relative stability now in Wall Street: Anabiya Which dived about 17% last night and erased about $ 600 billion from campaign, costs about 0.7%. Broadcom Which dive in a similar rate to the Annabiya last night, decreases by about 0.7%. Taiwan Semiconductor Who lost about 13% of the value, rises a little about 0.6% andMarvel Which dive by 19%, increases by 0.4%.

Where did the worry disappear in the markets?

The calm in the markets seems to be mainly liable in the last day’s analysts, when most of them claim that the discriminating in the markets was over -reaction.

Sabina Levy, Director of the Laid Capital Research Department, explains in a conversation with Globes that in its estimation, this morning’s trend also stems from the fact that investors realize that it will take time to estimate the consequences of the model that Detana shows: “Overall the information we have so far. , And we don’t really know the whole picture. -Ai, which is characterized by a high multiplier and high expectations.

Alon Lester, a technology analyst at the best investment house, joins Levi’s words:

Also overseas explained this morning that the sharp response last night was due to the exploitation of investors’ opportunities in the AI ​​shares. “To me, this is an over-reaction,” noted Tom Lee, head of research department at Fundstrat Global Advisors in an interview with CNBC. Lee added that: “The acute reaction of the market for the new Chinese Detah model is excessive, and may even provide a purchase opportunity on the AI ​​shares.”

At the same time, Paul Marino VP of Revenue at Themes ETFS referred to the model she presented: “Will anyone ready to trust a Chinese company and provide her with personal information, data and intellectual property? Also, the demand for hardware is still firm and the American giant companies have pledged a significant acquisition, which is not likely to change. This week we can get an estimate of the scope of investment of these companies, with the publication of Meta, Tesla, Apple and Microsoft reports. In my estimation, we will not see any significant changes to the investment strategy of these companies despite the appearance of Detan. ”

What do senior high -tech industry officials say?

Silicon Valley officials also referred to the launch of Deput’s model and some even stated that it was good news for the AI ​​field. Sam Altman, CEO of OpenAi, for example, praised the new model, noting that it is “an impressive model, especially in light of what stops capable of providing a low cost.” Altman added that “it is clear that we will provide much better models and at the same time we will take some editions.” Giant Andresen Horowitz tweeted that “Dema is the” Spoten “moment of artificial intelligence.”

US President Donald Trump also referred to the Chinese Artificial Artificial Intelligence’s announcement, claiming that the event should be used as “wake-up” to the American industries: “Chinese society’s announcement should be a wake-up call for our industries that need to be focused on the competition.” Waste billions of dollars need to reduce expenses and find a similar solution to that of Chinese society. We’re going to control the future like never. ”

Marino of Themes ETFS also estimates that events last night are a wake-up call for American companies when it comes to their massive investments in AI infrastructure. He also noted that “China does not give up on the battle for the technological revolutions, and in particular the battle for the AI.

Changing a trend or opportunity to improve positions?

On the face of it, the panic last night in the markets was mainly due to the fact that the incredibly inexpensive model of Diastras undermined the basic assumption that a strong calculation power needed to develop the best artificial intelligence, and overwhelmed investors who rushed to get rid of shares in the field. However, there are also voices in the market that estimate that Deput’s news is expected to give a back -to -technology shares.

Sergei Wachonuk, a senior analyst at Opanheimer, explained in a conversation with Globes that he estimates that last night’s events are an over -reaction, based on fairly pessimistic estimates for a decline in global investment in artificial intelligence. “We note that the Chinese success in building AI models may even increase Western Technology Companies investment, and not the opposite. In addition, the reduction of AI models should lead to an increase in demand for a variety of AI supporters, thus accelerating the entire chip market, which suffers from almost every segment Except for the AI ​​field in Sat Center.

UBS also emphasized that the AI ​​shares estimate that there is another place to rise: “Volatility in the technological sector may cost 2025. But we also expect large capital expenses and progress in AI development, so companies are expected to present strong profits that support our favorite shares” . We also expanded that “we see in the US IT sector because of its promising elements, and recommend investors to use any volatility in the near term to build adequate exposure to quality AI shares.”

Yaniv Peggot, VP of Trade on the Securities Exchange, estimates that last night’s events do not marry a trend in markets: “What will determine the trend in markets is the profitability of the companies that were in the headlines yesterday. This week, 102 reports of companies from the S&P and 4 reports of companies included in “Big 7 of the Technology” are expected to be published, where in my opinion it seems high growth that we have not seen long. And the revenue is expected to grow in the dialogue in the face of parallel quarters. Yesterday and understand not as a cry. ”

What shares did we enjoy the storm?

Despite the jolt recorded in the markets last night, there were also a number of sectors that enjoyed the sharp declines. While the technology sector in the S&P 500 has incorporated about 4%, the defensive sectors, including private consumption shares and health shares rose by 2.7%and 2.3%. The main reason for this is the run of investors toward safer assets when the shares belonging to the defensive sectors tend to yield excess return on the market.

The Discount Bank noted in their review that “at the sub-sector level, the new approach of Depseau may support advertising companies (cheaper access to AI in advertising applications), travel companies and tourism, consumed companies using artificial intelligence, algorithmic trading/ financial technology companies and probably also small startups To use the models/code of discontinuation. ”

Alongside this, Opanheimer explains that the events last night created an opportunity in Israeli chip shares that also dived by tens of percent: “The reduction of AI models may be used as a significant growth engine, thanks to a dramatic increase in demand for a variety of artificial intelligence. Prolonged weakness, with the AI ​​chip area being a single light point in this market.

“Expanding the use of AI may speed up all demands to chips, and as a result
This – also equipment for chips. It is important to emphasize that investment plans are of cloud companies
The leading and of chipmakers (led by TSMC Taiwanese) are long -term,
And they are not expected to change according to capital markets volatility.

In doing so, we see the landslide in Israeli chip companies as an interesting opportunity, and expect strong results in the current report season, which will lead to improvement in the sediment of investors and recovery in shares. We preserve our recommendations outperform on stocks Kamek andTower Samicon And raise our recommendation on a stock Nova Outperform with a $ 250 target price based on multiplier 25 for EBITDA forecast to 2026 plus cash. ”

Ophanheimer also explained that “chip and chip equipment has not experienced ups, except for individual growth centers in the artificial intelligence segment and slow -sectors.

Currently, shares Nova andKamek Trade in the premium to the average equipment industry, but this is justified in our estimation in light of the potential for growth over the concanzenzos in the coming years, in light of the focus of advanced technologies and competitive benefits. In contrast, a stock Tower Still traded in particularly low pricing, in one-digit EBITDA multipliers, pricing that does not reflect the potential of future growth, both in the fields of data chin and AI (still small, but grows in high rates) and traditional areas of analog chip production. ”