The valuation gap between China and the United States has widened to historical extremes, and AI technology breakthroughs are expected to be a catalyst for valuation repair.

At the close of trading on the morning of February 5, the market was volatile and differentiated in early trading, with the GEM index leading the rise. In terms of sectors, DeepSeek concept, computing power leasing, AI agents, precious metals and other sectors were among the top gainers, while CPO, snack food, civil aviation, high-speed connectors and other sectors were among the top decliners. In terms of ETFs, Bosera Science and Technology Innovation Board Artificial Intelligence ETF (code: 588790) rose 5.22% in the first half of the day, and among the constituent stocks, UCD-W (688158.SH) rose by the limit, Kingsoft Office (688111.SH) rose 19.39%, and EZVIZ Network (688475. SH) rose 12.16%.

The Bosera Sci-Tech Innovation Board Artificial Intelligence ETF (588790) closely tracks the SSE Sci-Tech Innovation Board Artificial Intelligence Index, which selects 30 listed companies with large market capitalization that provide basic resources, technology and application support for artificial intelligence as index samples to reflect the overall performance of the securities of listed companies in the representative artificial intelligence industry in the Sci-Tech Innovation Board market.

According to the data, as of January 27, 2025, the top 10 weighted stocks of the SSE Science and Technology Innovation Board Artificial Intelligence Index (950180) are Cambrian-U (688256.SH), Roborock (688169. SH), Kingsoft Office (688111. SH), Montage Technology (688008. SH), Hengxuan Technology (688608. SH), Jingchen Co., Ltd. (688099. SH), Espressif Systems (688018. SH), VeriSilicon (688521. SH), Zhongke Xingtu (688568. SH), Yuntian Lifei-U (688343.SH), the top ten weighted stocks accounted for 70.49% of the total.

On the news side, the Chinese AI startup DeepSeek (DeepSeek) has successively released two large models, DeepSeek-V3 and DeepSeek-R1, with low cost and performance, comparable to OpenAI. Since the official release of the model, DeepSeek has topped the global download charts of Apple's App Store and Google Play Store for many consecutive days.

Ming-Chi Kuo, a well-known analyst, recently pointed out that after DeepSeek becomes popular, the trend of end-side AI will accelerate. The popularity of DeepSeek has directly increased the training demand of the NVIDIA H100, which proves that optimizing the training method (which can also be regarded as reducing the cost) can help the training demand. Another, more notable trend is the boom in the deployment of LLMs on-premise.

China Securities pointed out that Deepseek promotes the revaluation of domestic AI+ confidence, and "AI+" is still the core main line. Deepseek's breakthrough is a major positive for the logic of the "AI+" industry, which has achieved an effect comparable to the top AI models in the United States at a lower cost and a smaller scale of computing power, completely subverting the industry's inherent perception that China is lagging behind American competitors in the AI race for many years, making the market's confidence in China's technology competition further significantly improved, or promoting the domestic "AI+" after the Spring Festival to go out of the independent market worldwide. Applications and other aspects will be performed.

Citi said that DeepSeek and other Chinese AI models, with their high efficiency and low cost, could accelerate the development of global AI applications and promote more technological innovations, driving the development of AI applications at an inflection point this year. Huatai Securities believes that DeepSeek's "low-cost + high-performance" characteristics may trigger a revaluation of global technology stocks. According to the data, the valuation gap between China and the United States has widened to historical extremes, and AI technology breakthroughs are expected to be a catalyst for valuation repair.