Apple and Meta Surge Amid AI Sell-Off, Fueled by DeepSeek Breakthrough

Key Points:

* Apple (AAPL) and Meta Platforms (META) stocks rose on Monday, defying the downward trend among tech peers.
* DeepSeek's cost-effective AI model prompted positive reactions from Apple and Meta.
* Apple's AI advantage in its iPhones, Meta's aggressive AI investments, and DeepSeek's efficiency gains drove the stock momentum.
* Chip stocks, including Nvidia (NVDA), fell due to the implications of DeepSeek's model on AI hardware demand.

DeepSeek's Impact on Apple:

- Apple stock jumped over 3% due to the potential for improved AI products in its iPhones.
- Analyst Gil Luria suggests that DeepSeek's smaller and more efficient models could enhance Apple's AI offerings.
- Apple also provides ChatGPT on its latest iPhone models.

Meta's AI Ambitions:

- Meta CEO Mark Zuckerberg announced plans to invest up to $65 billion in AI this year.
- The company's Llama AI model is positioned to benefit from DeepSeek's efficiency gains.

Chip Stocks' Decline:

- Nvidia (NVDA) and Broadcom (AVGO) led chip stocks lower, as DeepSeek's model challenges their reliance on AI chips.
- The Nasdaq dropped 3%, indicating a broader sell-off in tech stocks.

Apple's Earnings Outlook:

- Apple shares have declined 11% in the last month despite Monday's rise.
- Analysts forecast a stock increase to $246 within the next 12 months.
- Apple's earnings report is scheduled for January 30.