Citi: AI spending should continue to grow strongly for now

Golden Finance reported on January 29 that although DeepSeek's success has raised questions about the cost of developing artificial intelligence, AI spending should continue to grow strongly for now, noting that the Chinese company's model is based on leveraging cloud service providers and the technology is still in its infancy. Citi analyst Christopher Danely said that although AI spending growth does not seem to be slowing, "some kind of return on investment (ROI) needs to be seen eventually, otherwise spending may slow rapidly." "Whenever AI spending slows significantly, Broadcom will be the most affected, given its 24% AI exposure and 70% multiple expansion," Danely wrote.

Citi said that "Micron Technology will also be affected given its 8% AI exposure," while "AMD will also be affected, but to a lesser extent, because its MI300 product is well suited to the open AI system used by DeepSeek, which may be a good thing for AMD." (Jinshi)