Hedge Fund Kerrisdale Capital Says This 1 Stock Could Be a DeepSeek Winner

China just threw a curveball in the artificial intelligence (AI) race. DeepSeek, a one-year-old Chinese startup, has challenged the reign of several U.S. AI giants with its latest model, R1, which can match OpenAI’s, Google’s (GOOGL), or Meta’s (META) top-tier AI models, all while using less advanced chips and consuming far less energy. This latest development has sparked major panic among investors, with AI king Nvidia (NVDA) suffering a massive $600 billion loss in market value in a single day.

But DeepSeek is just the tip of the iceberg. With a growing army of tech innovators and a bold plan to lead the industry by 2030, China is racing to outpace the U.S. in the battle for technological supremacy. In fact, China is going all-in on AI, launching a 60-billion-yuan ($8.2 billion) investment fund just last month, a move that came right after the U.S. tightened chip export restrictions. But the push goes beyond funding.