Baird says the launch of China’s DeepSeek “catalyzes concerns” around rising power and implementation complexities in artificial intelligence systems. However, AI demand remains very strong, the analyst tells investors in a research note. Baird points out the rise of graphics processing units in graphics since the late 1990s has been hardware driven, and it is “very skeptical on performance workarounds” using simpler GPU architectures or pooling consumer CPU resources. While uncertainties remain around 2026 capital expenditures, AI stocks “cannot ignore strong numbers for the rest of this year,” contends the firm. Nvidia (NVDA) stands out as a less expensive stock than Broadcom (AVGO), while AMD (AMD) offers the most value at current levels, according to Baird. It would be a buyer of Nvidia and AMD on the current stock corrections. Baird’s top ideas in semiconductor components are Nvidia, Micron (MU), Semtech (SMTC), and Himax (HIMX).
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on NVDA:
- DeepSeek Surpasses ChatGPT, Shaking Up the Global AI Landscape
- Nvidia-Heavy ETFs Plummet as China’s DeepSeek Triggers AI Competition Fears
- “We’ll Obviously Deliver Much Better Models,” Says Altman About DeepSeek R1
- Analysts Back Nvidia as DeepSeek Shakes Up Silicon Valley
- ‘Load Up on the DeepSeek Dip,’ Says Top Analyst About Nvidia Stock