Morgan Stanley IM: China's DeepSeek Moment

While a handful of companies lead the cutting edge research, a low-cost AI sector is beginning to take shape.

For a government seeking to reinvigorate its economy and infuse its youth with optimism, DeepSeek’s emergence is more than just an artificial intelligence (AI) milestone – it’s a timely symbol of China’s ambition to claim a leadership role in the tech revolution. DeepSeek’s breakthrough will likely inspire a new generation of Chinese talent at a time of renewed nationalism. With China’s strengths in consumer technologies and cost efficiency, we believe a new path has opened for emerging market investors to participate in the AI wave, beyond the supply chain-centric thematic offered by Taiwan and Korea.

Amay Hattangadi and Samson Hung explore potential investment opportunities in emerging markets driven by the wider adoption of AI.

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