0927 GMT - DeepSeek's breakthrough should bode well for server and networking vendors, HSBC analyst Frank He says in a research note. As DeepSeek's model was developed at a much lower cost and requires less computing power, it could lead to a multifold increase in inference demand and accelerate investment in AI infrastructure in the coming quarters, the analyst says. HSBC expects the localization trend to gain strength as Chinese cloud service providers move toward domestic AI accelerators for their better capabilities in data inferencing as well as their close rapport with government institutions and state-owned enterprises, he says. The broker raises its 2025 and 2026 AI accelerator shipment forecast in China by 25% and 39%, respectively, for local suppliers. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 25, 2025 04:27 ET (09:27 GMT)
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