Chinese-based generative artificial intelligence (AI) start-up DeepSeek is dominating conversations in technology and stock markets due to its performance, reportedly rivaling dominant players such as OpenAI’s ChatGPT.
Given the perceived disruptive nature of the firm’s R1 model, attention has shifted to its potential role in the ongoing AI revolution.
To explore this, Finbold consulted the open-source tool to generate a stock market portfolio.
Picks for you
Specifically, DeepSeek was tasked with selecting two stocks investors can buy now and hold long-term due to their growth potential, backed by strong fundamentals.
Nvidia (NASDAQ: NVDA)
At the top of the list is semiconductor giant Nvidia (NASDAQ: NVDA). DeepSeek highlighted Nvidia’s significant growth potential, which is driven by its role in the rapidly evolving AI landscape. The AI model emphasized Nvidia’s position as a key player in providing leading GPUs for data centers, gaming, and autonomous vehicles.
However, DeepSeek pointed to several risk factors that investors should anticipate. For instance, while Nvidia’s growth prospects are immense, its high valuation reflects elevated market expectations.
Additionally, a slowdown in AI adoption or increased competition could impact its long-term potential.
Interestingly, NVDA’s share price is currently experiencing a short-term price correction as the market reacts to the advent of DeepSeek’s R1 model, which achieved performance levels comparable to market leaders at a fraction of the cost.
This development has raised concerns that Nvidia’s revenue could decline due to a slowdown in AI-related spending. However, some analysts dismiss the potential impact of DeepSeek on Nvidia’s prospects as overblown.
As of press time, NVDA was trading at $124.07, down over 10% since the last trading session. On the weekly chart, the stock has plunged by more than 8%.
CRISPR Therapeutics (NASDAQ: CRSP)
DeepSeek also identified CRISPR Therapeutics (NASDAQ: CRSP) as a top pick, citing its pioneering work in gene-editing technology, which has the potential to revolutionize medicine by curing genetic diseases.
If successful, the company’s therapies could deliver transformative value in healthcare, making CRISPR a notable stock to buy now.
The company recently unveiled several strategic priorities related to the ongoing launch of Casgevy, a one-time gene therapy treatment for blood disorders. Indeed, a breakthrough in this space could propel CRSP to the top healthcare sector.
Notably, CRISPR Therapeutics has drawn political attention recently, particularly with the nomination of Robert F. Kennedy Jr. as U.S. Health Secretary. If confirmed, Kennedy has stated his intention to divest his stakes in CRISPR Therapeutics within 90 days.
While acknowledging the biotechnology company’s potential, DeepSeek cautioned that the emerging gene-editing field faces numerous challenges. These include regulatory hurdles, clinical trial uncertainties, and fierce competition, all of which could impact its share price.
At the time of reporting, CRSP was trading at $42.35, a drop of almost 2% since the last trading session.
Although Nvidia and CRISPR Therapeutics have been identified as ideal long-term investments, market headwinds such as competition and regulatory challenges could impact their performance.
Featured image via Shutterstock
