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AVGO
Benzinga
199 days

These 3 Stocks are at Most Risk From China's AI Innovation

1. DeepSeek claims AI success with $5.6 million in chip costs, less than competitors. 2. Nvidia shares fell 17%, Broadcom dropped 17.4% after DeepSeek news. 3. Morgan Stanley cut AVGO's target price due to cheaper AI innovations. 4. DeepSeek may change competition, prompting faster AI advancements and lower costs. 5. Impact on traditional chip companies like Broadcom could be long-lasting.

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FAQ

Why Bearish?

DeepSeek introduces cost-effective AI solutions, threatening traditional chip supplier prices, like AVGO's.

How important is it?

The emergence of cheaper AI solutions could substantially impact AVGO's market position and pricing strategies.

Why Long Term?

The trend towards cheaper AI technology could persist and reshape the AI chip market.

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