Investors eye AI stocks as market reacts to DeepSeek model announcement

Investors are considering three AI stocks in February following the release of DeepSeek's R1 model, which was trained more cheaply than U.S. models. This caused some initial panic in the market, but some stocks have since recovered. Nvidia was significantly impacted by the DeepSeek announcement, but its reliance on high-powered GPUs remains strong. The stock is seen as a buying opportunity, with projected revenue growth of 52% for fiscal year 2026. Meta Platforms quickly rebounded after strong Q4 results, with a 21% increase in ad revenue. The company plans to invest heavily in AI, aiming to develop advanced AI engineering capabilities. ASML, a key player in chip manufacturing, reported strong bookings and is expected to benefit from the growing demand for computing hardware.