Analysis: The DeepSeek R1 Model Sparks Demand for AI Infrastructure, Offering New Opportunities for High-Speed Network Equipment Providers

According to a report from Jinshi on February 10, despite the sell-off in U.S. stocks triggered by the DeepSeek R1 model, which led to a 2.4% decline in the Roundhill "Seven Giants" ETF (MAGS) over the past five trading days, this technological breakthrough is creating new investment opportunities. Bank of America analyst Chun Him Cheung pointed out that the R1 model will significantly lower the cost of AI computing power and accelerate the adoption of AI applications, thereby driving rapid growth in demand for high-speed network infrastructure.

Zack Kass, former head of market expansion at OpenAI, stated that the DeepSeek R1 model represents a significant breakthrough in the industry, with its innovative initiatives recognized by tech giants including Alphabet CEO Sundar Pichai and Meta CEO Mark Zuckerberg. Tony Wang, a technology stock portfolio manager at T. Rowe Price, emphasized that network infrastructure has become a major bottleneck for AI deployment, necessitating breakthroughs in technological innovation.

In terms of specific investment targets, Stifel analyst Ruben Roy believes that network equipment manufacturers such as Ciena, Coherent, and Celestica will benefit significantly. Among them, Ciena has received new orders from cloud service providers, while Celestica will benefit from the trend of hyperscale companies developing custom chips independently. Morgan Stanley analyst Meta Marshall is optimistic about the growth prospects of Arista Networks, believing that the recent stock price pullback provides a good entry opportunity, and has given it a "buy" rating ahead of its earnings report on February 18.