DeepSeek Strained by High Demand, Computing Power Stocks Surge

On February 7th, stocks associated with computing power experienced substantial gains. Companies such as Inspur Information, Yonyou Network, and Eastern Materials reached their daily maximum limits. Additionally, Capital Online saw a significant rise with a daily limit up of 20cm. Other firms like Cambricon Technologies, CloudWalk Technology, Digital China, Sugon Information Industry Co., Ltd., and Foxconn Industrial Internet recorded increases of over 6%.

Recent events have put a spotlight on DeepSeek, which has faced server resource limitations. The company announced on the evening of February 6th that it would temporarily halt API service recharges. Users attempting to log into the DeepSeek open platform found the recharge button unavailable. This decision aimed to prevent disruptions for current users, and all existing recharge amounts remain usable.

As of February 4th, 2025, DeepSeek boasted approximately 22.15 million daily active users, marking 41.6% of ChatGPT’s 53.23 million users and surpassing Douyin's 16.95 million users. The influx of new users has rapidly drained the server's computing power resources, leading to soaring demand.

Experts warn that as AI models evolve, the requirements for computing power will continue to rise. Larger model parameters contribute to this demand, resulting in heightened needs for training and inference.

This surge in demand for computing infrastructure has yielded benefits for various suppliers, particularly server and chip manufacturers like Inspur Information. There is a growing expectation of increased orders in the market. Furthermore, cloud service providers stand to gain by offering computing resource leasing services, which motivates related software companies to enhance their research and development efforts.

However, DeepSeek's struggle with insufficient computing power presents a unique case driven by explosive demand growth. In the near term, the broader balance of supply and demand in China’s intelligent computing market might even lead to localized capacity excess, where smaller enterprises are left with idle resources due to chip accumulation.

Looking ahead, the continuous development and application of technologies such as AI is anticipated to fuel ongoing demand for computing power, which may face challenges over time. Analysts believe that domestic chip manufacturers will find opportunities amid growing inference terminal demands driven by international restrictions on AI chip production. Areas of focus for potential investment include semiconductor foundries, cloud service providers, computing resource leasing companies, domestic chip producers, and server manufacturing partners.

SEE ALSO: Alibaba, Baidu, Tencent, and Other Platforms Launch DeepSeek

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DeepSeek, computing, stocks