To The Moon

In the fast-paced world of artificial intelligence (AI), companies are constantly seeking ways to build a competitive advantage, or what's often referred to as a "moat."

DeepSeek, a Chinese AI company, has recently emerged as a formidable player, challenging the dominance of established giants like Google and OpenAI.

But what exactly is DeepSeek's moat, and how does it set them apart?

A Unique Approach to AI Development

DeepSeek's moat can be attributed to a combination of factors, including their unique approach to AI development, their focus on efficiency, and their commitment to open-source collaboration.

Efficiency as a Key Differentiator

One of DeepSeek's most notable achievements is their ability to develop cutting-edge AI models at a fraction of the cost compared to their competitors. DeepSeek's latest R1 model, for example, was built with just $6 million in raw computing power, a mere pittance compared to the billions invested by companies like OpenAI and Google. This efficiency is achieved through a combination of factors, including DeepSeek's innovative model architecture, their use of lower-cost AI chips, and their focus on optimizing their algorithms.  

Open-Source Collaboration

DeepSeek is also a strong proponent of open-source collaboration. They believe that by sharing their models and research with the wider AI community, they can accelerate the pace of innovation and create a more inclusive AI ecosystem. This commitment to open-source collaboration has earned DeepSeek a strong reputation within the AI community and has helped them attract top talent from around the world.

The Power of Talent

DeepSeek's success is also a testament to the power of talent. The company has assembled a team of world-class AI researchers and engineers who are passionate about pushing the boundaries of AI. This talented team has been instrumental in developing DeepSeek's innovative AI models and has helped the company achieve its remarkable efficiency.

A Threat to the Status Quo

DeepSeek's emergence as a major player in the AI world has sent shockwaves through Silicon Valley and beyond. The company's unique approach to AI development, its focus on efficiency, and its commitment to open-source collaboration have disrupted the traditional model of AI development and have forced established players to rethink their strategies.  

The Future of AI

DeepSeek's success is a sign of things to come in the AI world. As the cost of AI development continues to decline and as open-source collaboration becomes more prevalent, we can expect to see more companies like DeepSeek emerge and challenge the dominance of the established giants. This is an exciting time for the AI industry, and DeepSeek is at the forefront of this new frontier.

Which Chinese ADR Stocks To Look At

Considering we know DeepSeek’s MOAT, but we are not able to trade its stock, but we can see that some companies are already adopting or integrating DeepSeek, and I believe some of the chinese tech companies would benefit more than others.

$Alibaba(BABA)$

I have been a customer of Alicloud for more than 5 years, and recently we tried to deploy DeepSeek, I would say it is almost a breeze, it took only five minutes. So considering that if this deployment took such a short time.

It would be much easier for developers to test their DeepSeek and the use the base model to integrate with their own one.

Since BABA earnings, we have seen a very nice daily uptrend, and with the partnership with $Apple(AAPL)$ to roll out enhanced AI feature on the iPhone, looks like BABA is back in business.

RSI is currently in the overbought region, I see it as a strong momentum with very good buying sentiment, and this should help to push BABA share price higher.

$Tencent Holding Ltd.(TCEHY)$

Tencent is a mobile gaming giant while also operating key messaging apps, including the everything app WeChat, or Weixin. WeChat is beta testing using DeepSeek.

We should be able to see DeepSeek bring more advanced chat feature on the WeChat and this should be able Tencent to plan for monetization when that happen.

From the technical, RSI is in the overbought region which signal strong momentum from buying sentiment, and we can see Tencent making new highs with daily uptrend expansions.

Summary

DeepSeek's moat is a combination of factors, including their unique approach to AI development, their focus on efficiency, and their commitment to open-source collaboration. These factors have allowed DeepSeek to achieve remarkable success in a short period of time and have positioned them as a major player in the AI world.

As DeepSeek continues to innovate and push the boundaries of AI, they are sure to have a significant impact on the future of the industry.

I believe it is time to look at the Chinese ADR tech stocks that I have highlighted, they could be making a new wave of rally.

Appreciate if you could share your thoughts in the comment section whether you think DeepSeek could help Chinese ADR trigger a rally.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.