Although I haven’t seen any statistics, I’m reasonably confident that most investors have at least one of the Magnificent Seven in their . Given these companies’ strong earnings growth, massive influence and the hype surrounding artificial intelligence (AI), it stands to reason they’d feature in many portfolios. Indeed, I have an AI investment fund in my ISA.
I was therefore affected by the news that DeepSeek has become the most popular free app to download. , in particular, was affected. Its shares fell over 15% after investors feared that the arrival of the Chinese large language model would result in lower demand for its chips.
Personally, I think the impact of DeepSeek has been exaggerated. Is it credible that it was developed for $6m? After all, ChatGPT’s cost more than $1bn to train. I don’t think so.
I know China’s able to make most things cheaper than the rest of the world. But I find it hard to believe that a piece of software that’s hailed as such a game-changer, can be developed for a of Nvidia. But whatever the truth of the matter, it’s certainly been a wake-up call for the tech sector.
And AI stocks in particular. Until the situation becomes clearer, I think now’s a good time for investors to go back to basics. Putting some ‘old-fashioned’ stocks in their ISAs might be the way to go.
And there’s one energy company that could fit the bill. Drill, baby, drill? It’s believed that oil was first extracted from the ground over 1,500 years ag.