11 Chinese AI Stocks to Watch After DeepSeek's Market Disruption

Name	Why Selected as DeepSeek-Related Stock
Aurora Mobile (JG)	- Integrated DeepSeek's inference large model, DeepSeek-R1, into its AI platform. - DeepSeek-R1's performance is comparable to OpenAI's strongest inference model but with significantly reduced training costs.
MicroCloud Hologram Inc. (HOLO)	- Announced the use of DeepSeek's technology as the foundation for its holographic AI applications. - DeepSeek's R1 model performs exceptionally well in key areas, rivaling OpenAI's top inference models.
Alibaba (BABA)	- Significant investments in artificial intelligence and cloud computing. - Actively develops AI technologies, including large language models and AI applications, through Alibaba Cloud Intelligence Group.
Baidu (BIDU)	- Leading AI company in China, seen as a major beneficiary of the AI boom sparked by DeepSeek. - DeepSeek's breakthroughs align well with Baidu's AI strategy, expected to enhance Baidu's AI products, such as ERNIE Bot.
JD.com (JD)	- Invests in cutting-edge technologies such as artificial intelligence, big data, and cloud computing. - Shares a similar direction of technological innovation and digital transformation with DeepSeek.
NetEase (NTES)	- Continuous investment and innovation in artificial intelligence and deep learning. - Actively applies AI technology in multiple business segments. - Launched its own educational large model, "Ziyue."
Li Auto (LI)	- Significant investments and innovations in intelligent driving, artificial intelligence, and electric vehicle technology. - Committed to developing advanced autonomous driving systems and intelligent vehicle technologies.
XPeng (XPEV)	- Deep expertise and continuous innovation in artificial intelligence and autonomous driving technology. - Developed a fully self-developed intelligent driving system, XNGP, and an intelligent cockpit system.
NIO (NIO)	- Continuous investment in cutting-edge technologies such as artificial intelligence, autonomous driving, and intelligent cockpits. - Aligns with DeepSeek's technological development direction in deep learning and AI applications.
Kingsoft Cloud (KC)	- Layout in artificial intelligence and cloud computing. - Expected to benefit from the popularization of AI applications, especially in providing AI-related cloud infrastructure and services.
Xiaomi (1810.HK)	- Active layout in the fields of artificial intelligence and edge computing. - Strengthened its AI large model team by recruiting core researchers from DeepSeek at high salaries.

At the end of January 2025, a new AI model released by the Chinese AI startup DeepSeek caused a significant stir in the market, substantially impacting global tech stocks.

DeepSeek claimed that their new model excelled in mathematics, coding, and reasoning tasks, rivaling leading AI models like GPT-4, but at a fraction of the development cost of their competitors. This announcement sparked concerns among investors about future profit growth for U.S. tech giants, leading to a massive sell-off in tech stocks.

Nvidia was hit the hardest, with its stock price plummeting 17% on January 27th, wiping out nearly $600 billion in market value, marking the largest single-day market cap loss in U.S. stock market history. Other affected companies included Meta Platforms, Microsoft, and Alphabet, whose stock prices also fell to varying degrees. The Philadelphia Semiconductor Index (SOX) experienced its worst day since March 2020.

Meanwhile, some software companies' stocks bucked the trend. For instance, Salesforce's stock price rose 8% that week, while Apple's increased by 7%. This was because investors believed that software companies, as buyers of AI technology, might benefit if AI models become more efficient and cost-effective.

Asian markets were also affected, with Japanese tech stocks such as Advantest, SoftBank, and Tokyo Electron falling, causing the Nikkei 225 index to drop by about 1%.

However, the market reaction may have been somewhat excessive. Some analysts pointed out that DeepSeek's cost data might be incomplete, and actual development costs could be much higher than publicly claimed. Moreover, while DeepSeek's breakthrough might affect short-term market sentiment, the demand for AI infrastructure remains strong in the long term.

Overall, the DeepSeek incident triggered a market reassessment of the AI technology competitive landscape, highlighting the enormous impact of technological innovation on the stock market. This event may promote healthy competition in the AI industry, ultimately benefiting the entire sector. However, the market will need time to digest this information, and tech stock trends may continue to fluctuate in the coming weeks.

Aurora Mobile (JG)

Why it's considered a DeepSeek-related stock

Aurora Mobile recently integrated DeepSeek's inference large model, DeepSeek-R1, into its AI platform. This move closely connects Aurora with DeepSeek in the AI field. DeepSeek's R1 model's performance in key areas like mathematics, programming, and reasoning is comparable to OpenAI's strongest inference model, but with significantly reduced training costs. This brings notable technological improvements and cost advantages to Aurora's AI services.

Company Overview

Founded in 2011, Aurora Mobile is a leading customer engagement and marketing technology service provider in China. Headquartered in Shenzhen, the company has branches in Beijing, Shanghai, Guangzhou, and Chengdu. Aurora was listed on NASDAQ in July 2018 under the ticker symbol JG. The company initially focused on providing developers with stable and efficient services such as push notifications, instant messaging, statistical analysis, social components, and SMS. It has gradually expanded into the field of big data services.

Key Technologies/Products/Services

• JPush: Efficient push notification service for mobile applications.
• Aurora IM: Instant messaging service.
• GPTBots.ai: AI agent platform.
• EngageLab: Global messaging service platform.
• Big Data Services: Including precision marketing (Jiguang Effect), financial risk control, market insights, and business location services (Jiguang iZone).

Market Position

Aurora holds a leading position in the mobile push notification service market. As of June 2018, Aurora served 344,000 mobile app developers and 887,000 mobile apps. Its SDK installation volume has reached nearly 15 billion, with nearly 1 billion monthly active unique devices. The company is actively expanding its overseas market, and the EngageLab business is growing rapidly worldwide.

Financial Performance

• Key Metrics
  • Q3 2024 Revenue: RMB 79.1 million (US$11.3 million)
  • Gross Profit: RMB 53.2 million (US$7.6 million)
  • Net Loss: RMB 2.2 million (US$0.3 million)
• Revenue Trends
  • Q3 2024 revenue increased by 7% year-over-year.
  • Developer subscription service revenue reached a record high, exceeding RMB 50 million for the first time.
  • EngageLab business revenue increased by nearly 100% year-over-year.
• Profitability
  • Achieved adjusted EBITDA profitability for five consecutive quarters.
  • Net loss narrowed by 69% year-over-year, indicating continuous improvement in profitability.

Future Outlook and Challenges

Outlook:

1. AI Technology Integration: The collaboration with DeepSeek provides Aurora with advanced AI capabilities, potentially leading to breakthroughs in AI applications.
2. Overseas Market Expansion: The rapid growth of the EngageLab business globally offers new growth opportunities.
3. Subscription Service Growth: Continued growth in developer subscription service revenue provides a stable revenue stream.
4. Big Data Service Expansion: Broad application prospects in precision marketing, financial risk control, and other fields.

Challenges:

1. Market Competition: Intense competition in the AI and big data service fields requires continuous innovation to maintain competitiveness.
2. Technology Updates: The rapidly changing technological environment requires the company to constantly update and optimize its products and services.
3. Profitability Improvement: Although the loss is narrowing, further improvement in profitability is needed.
4. International Operations: Expanding into global markets requires navigating different regulatory and market environments.

MicroCloud Hologram Inc. (HOLO)

Why it's considered a DeepSeek-related stock

MicroCloud Hologram Inc. has announced that it will use DeepSeek's technology as the foundation for its holographic AI applications, closely linking the company's development with DeepSeek. DeepSeek's recently launched R1 model performs exceptionally well in key areas, even rivaling OpenAI's top inference models, further raising market expectations for MicroCloud Hologram's future.

Company Overview

MicroCloud Hologram Inc. is a technology company focused on the development and application of holographic technology. The company is committed to providing leading holographic technology services to global customers, including holographic digital twin technology services, and has established a holographic digital twin technology resource library.

Key Technologies/Products/Services

• 6D holographic light field display technology
• Cloud platform services
• Virtual visual creative
• Holographic portrait restoration
• Holographic product launch
• Holographic digital twin technology

Market Position

MicroCloud Hologram is a leader in the holographic technology field, with world-leading technology. The company has physical holographic experience centers in multiple cities, which helps enhance user perception and promote product adoption. However, as a small-cap Chinese stock, its market capitalization is relatively small, less than $40 million as of the end of January 2025.

Financial Performance

• Key Metrics
  • Total revenue of 129 million RMB as of June 30, 2024
  • Net loss attributable to the parent company was -121 million RMB
• Revenue Trends
  • Revenue for the first half of 2024 increased by 31.41% year-over-year
• Profitability
  • Net loss increased by 321.06% year-over-year, indicating the company is facing profitability pressure.

Future Outlook and Challenges

Outlook:

• The holographic technology market is in a stage of rapid development, providing broad growth opportunities for the company.
• The integration of DeepSeek technology could bring new growth points for the company.
• The AR/VR market is expected to expand at a CAGR of over 30%, creating opportunities for the company.

Challenges:

• Market competition is intensifying, with large technology companies increasing their investment in holographic technology.
• The company needs to improve its financial situation, especially reversing the decline in net profit.
• As a small company, it needs to maintain its technological advantages and innovation capabilities in the fierce market competition.
• The stock price is highly volatile, and investors should be aware of potential risks.

Alibaba (BABA)

Why it's considered a DeepSeek-related stock

Alibaba, as a leading technology giant in China, has significant investments in artificial intelligence and cloud computing. The company actively develops AI technologies, including large language models and AI applications, through Alibaba Cloud Intelligence Group, making it an important DeepSeek-related stock.

Company Overview

Founded in 1999, Alibaba Group is headquartered in Hangzhou, China. It is a global leader in e-commerce and technology, with businesses spanning e-commerce, cloud computing, digital media and entertainment, and other fields. Alibaba is dual-listed on the New York Stock Exchange and the Hong Kong Stock Exchange.

Key Technologies/Products/Services

• E-commerce Platforms: Taobao, Tmall, 1688, AliExpress, etc.
• Cloud Computing and AI: Alibaba Cloud, Tongyi Qianwen large language model.
• Digital Payment: Alipay (through affiliate Ant Group).
• Logistics: Cainiao Network.
• Local Life Services: Ele.me, Amap.
• Digital Media and Entertainment: Youku, Alibaba Pictures.

Market Position

Alibaba holds a leading position in China's e-commerce market, with its Taobao and Tmall platforms being among the world's largest online retail marketplaces. In the cloud computing field, Alibaba Cloud is the largest cloud service provider in the Asia-Pacific region and ranks among the top globally.

Financial Performance

• Key Metrics
  • Q3 FY2024 Revenue: RMB 236.5 billion, up 5% year-over-year.
  • Net Income: RMB 43.874 billion, up 63% year-over-year.
  • Adjusted EBITA: RMB 40.561 billion, down 5% year-over-year.
• Revenue Trends Alibaba's revenue growth has slowed in recent years but remains stable. E-commerce revenue growth is relatively flat, while cloud computing revenue is growing faster.
• Profitability The company maintains strong profitability, but increased investment in the e-commerce business has impacted profit margins.

Future Outlook and Challenges

Outlook:

• Continue to develop AI technology and drive cloud computing business growth.
• Deepen internationalization strategy and expand overseas markets.
• Strengthen local life services and enhance user stickiness.
• Explore emerging technology fields such as the metaverse and Web3.0.

Challenges:

• Intensifying competition in the domestic e-commerce market, with increasing pressure from competitors like Pinduoduo and JD.com.
• Changes in the regulatory environment may impact business development.
• Geopolitical risks and cultural differences in the internationalization process.
• Need for continuous large investments to maintain technological leadership.
• Fierce competition for talent, especially high-end talent in AI and cloud computing.

Baidu (BIDU)

Why it's considered a DeepSeek-related stock

Baidu, as a leading AI company in China, is seen as a major beneficiary of the AI boom sparked by DeepSeek. DeepSeek's breakthroughs demonstrate the potential of low-cost, high-performance AI models, aligning well with Baidu's AI strategy. This is expected to further enhance Baidu's AI products, such as ERNIE Bot.

Company Overview

Founded in 2000, Baidu is China's largest search engine and a leading AI company. With the mission to "make the complex world simpler through technology," Baidu aims to become a top-tier global high-tech company. Baidu has strong technological capabilities and market position in search engines, artificial intelligence, cloud computing, and other fields.

Key Technologies/Products/Services

• Search Engine: Baidu Search
• Artificial Intelligence: ERNIE Bot, Baidu AI Cloud
• Autonomous Driving: Apollo platform
• Smart Devices: DuerOS smart speakers
• Cloud Computing: Baidu AI Cloud
• Big Data Analytics: Baidu Huixin

Market Position

• Leading market share in China's search engine market, with a mobile market share of 69.09%.
• One of the four major global AI companies.
• One of China's leading cloud service providers.

Financial Performance

• Key Metrics

  • Total Revenue in 2023: 134.598 billion yuan
  • Adjusted Net Income in 2023: 28.7 billion yuan
  • Earnings per share in 2023: 6.98 yuan

• Revenue Trends Total revenue in 2023 increased by 8.83% year-on-year, showing steady growth.

• Profitability Adjusted net income in 2023 increased by 39% year-on-year, reflecting strong improvement in profitability.

Future Outlook and Challenges

Outlook:

• Continued innovation and application of AI technology will drive the growth of Baidu's core businesses.
• Commercialization of autonomous driving technology is expected to bring new revenue growth.
• Cloud computing and big data businesses are expected to continue expanding market share.

Challenges:

• Intensifying competition in the AI field requires maintaining technological leadership.
• Changes in the regulatory environment may impact business development.
• Need to address the impact of global economic uncertainty.

JD.com (JD)

Why it's considered a DeepSeek-related stock

JD.com, as a leading technology-driven e-commerce company and retail infrastructure service provider in China, continues to invest in cutting-edge technologies such as artificial intelligence, big data, and cloud computing. It shares a similar direction of technological innovation and digital transformation with DeepSeek. JD.com's technological innovation capabilities and data resources are important references for AI companies like DeepSeek.

Company Overview

Founded in 1998, JD.com is a leading comprehensive e-commerce platform in China. Its main businesses include JD Retail, JD Logistics, JD Health, and others. JD.com adopts a business model that combines self-operated and open platform approaches, providing efficient delivery services through its self-built logistics network. The company was listed on the NASDAQ in 2014 and had a secondary listing in Hong Kong in 2020.

Key Technologies/Products/Services

• E-commerce Platform: JD.com offers a full range of products, covering categories such as 3C, home appliances, apparel, and fresh food.
• Logistics Network: Self-built warehousing and distribution system, providing fast delivery services.
• Technological Innovation: Continuous investment in artificial intelligence, big data, cloud computing, and other fields.
• Emerging Businesses: Vertical layouts in areas such as JD Health and JD Industrials.

Market Position

JD.com is the second-largest e-commerce platform in China and has a leading advantage in the 3C and home appliance categories. The company's self-operated business scale and logistics network construction are at the forefront of the industry, with competitive advantages in user experience and delivery efficiency.

Financial Performance

• Key Metrics

  • Full-year revenue in 2023: RMB 1,084.7 billion
  • Net income in 2023: RMB 24.2 billion
  • Active user count: Continued double-digit growth

• Revenue Trends

  • Revenue increased by 3.7% in 2023
  • Product revenue increased by 0.7%, and service revenue increased by 17.8%
  • The electronics and home appliance categories maintained growth rates higher than the industry average

• Profitability

  • Net income increased by 133% in 2023
  • Both gross margin and non-GAAP net margin improved
  • Operational efficiency continued to improve, with inventory turnover days reduced to 30.3 days

Future Outlook and Challenges

Outlook:

• Continue to deepen the low-price strategy, enhance user experience and price competitiveness.
• Strengthen the platform ecosystem and attract more small and medium-sized merchants.
• Promote globalization and expand overseas markets.
• Increase investment in technological innovation to improve supply chain and logistics efficiency.

Challenges:

• Intensifying industry competition, especially pressure from emerging platforms like Pinduoduo.
• Slowing consumer market growth requires continuous optimization of cost structure.
• Changes in the regulatory environment may bring uncertainty.
• Need to balance growth and profitability, and continue to increase market share.

NetEase (NTES)

Why it's considered a DeepSeek-related stock

NetEase is considered a DeepSeek-related stock primarily due to its continuous investment and innovation in artificial intelligence and deep learning. The company actively applies AI technology in multiple business segments such as game development, music services, and educational technology, and it continues to increase R&D investment to improve product and service quality. NetEase has also launched its own educational large model, "Ziyue," demonstrating its layout and ambition in the field of large language models.

Company Overview

Founded in 1997, NetEase is one of China's leading internet technology companies. Its main businesses include online game development and operation, online education, music streaming services, and e-commerce. NetEase is listed on NASDAQ (NTES) and the Hong Kong Stock Exchange (9999.HK) and is a leading company in China's internet industry.

Key Technologies/Products/Services

• Online Games: Self-developed games such as "Fantasy Westward Journey," "Westward Journey Online," and "Justice."
• NetEase Youdao: Intelligent learning platform, including online courses and AI-assisted learning tools.
• NetEase Cloud Music: Music streaming service.
• Yanxuan: Self-operated quality e-commerce platform.
• AI Technology: Ziyue educational large model, AI applications in game development.

Market Position

NetEase holds a leading position in China's internet and gaming industry, ranking second only to Tencent as the largest gaming company. It also has a strong market influence in online education and music streaming. The company continues to expand its overseas markets, especially in the gaming business.

Financial Performance

• Key Metrics

  • Q3 2024 Net Revenue: 26.2 billion yuan
  • Games and related value-added services net revenue: 20.9 billion yuan
  • R&D investment intensity: 16.9%

• Revenue Trends Q3 2024 total revenue decreased by 3.9% year-over-year but increased by 2.8% quarter-over-quarter. Game business revenue decreased by 4.2% year-over-year but increased by 4.0% quarter-over-quarter.

• Profitability Q3 2024 gross margin was 62.9%, a slight increase year-over-year. Net income attributable to shareholders was 6.538 billion yuan, down 16.6% year-over-year.

Future Outlook and Challenges

Outlook:

• Continue to increase the application of AI technology in various business areas, especially in game development and educational technology.
• Expand overseas markets, especially the globalization of the gaming business.
• Strengthen music copyright cooperation and enrich the content library.
• Develop innovative business models such as "AI + Music."

Challenges:

• Intensifying competition in the gaming industry requires continuous innovation to maintain market position.
• Changes in the regulatory environment may affect the development of the gaming business.
• Overseas expansion faces challenges of cultural differences and market adaptability.
• Need to balance R&D investment with short-term profitability pressure.
• In the AI field, it needs to compete with other technology giants for talent and technological advantages.

Li Auto (LI)

Why it's considered a DeepSeek-related stock

Li Auto, as a leading new energy vehicle manufacturer in China, has significant investments and innovations in intelligent driving, artificial intelligence, and electric vehicle technology. The company is committed to developing advanced autonomous driving systems and intelligent vehicle technologies, which aligns closely with DeepSeek's development direction in artificial intelligence and deep learning.

Company Overview

Founded in 2015, Li Auto is headquartered in Beijing. The company specializes in the design, development, manufacturing, and sales of high-end intelligent electric vehicles, primarily targeting the Chinese market. Li Auto is known for its innovative extended-range electric vehicle technology and intelligent driving systems, and has become a major player in China's new energy vehicle market.

Key Technologies/Products/Services

• Extended-Range Electric Vehicle Technology: Combines electric drive with a small fuel generator to address the range anxiety of pure electric vehicles.
• Intelligent Driving System: Self-developed AD Max and AD Pro platforms, providing advanced driver assistance functions.
• Intelligent Cockpit: Multi-screen interactive system and full-vehicle voice control.
• High-Performance Battery System: 800V high-voltage fast charging technology developed in cooperation with CATL.
• Intelligent Manufacturing: Adopts advanced intelligent factory production lines to improve production efficiency and quality.

Market Position

Li Auto holds a leading position in China's luxury new energy SUV market. As of the end of 2023, the company's cumulative deliveries exceeded 700,000 vehicles, ranking first among new EV startups in China. In the new energy vehicle market priced above 300,000 yuan, Li Auto's market share exceeds 30%, making it a leader in this segment.

Financial Performance

• Key Metrics

  • Full-year deliveries in 2023: 376,030 vehicles, up 182.2% year-over-year.
  • Revenue in 2023: 123.85 billion yuan, up 173.5% year-over-year.
  • Net income in 2023: 11.81 billion yuan.

• Revenue Trends Li Auto's revenue shows strong growth. Q4 2023 revenue reached 41.73 billion yuan, up 136.4% year-over-year. The company expects Q1 2024 revenue to reach 31.25 billion to 32.19 billion yuan, up 66.3% to 71.3% year-over-year.

• Profitability The company has achieved profitability for six consecutive quarters, demonstrating good profitability. Q4 2023 net income was 5.75 billion yuan, and the gross margin remained at a healthy level of 23.5%.

Future Outlook and Challenges

Outlook:

• Continue to expand the product line, with plans to launch multiple new models in 2024.
• Increase investment in intelligent driving technology to enhance autonomous driving capabilities.
• Expand the charging network, with plans to build over 2,000 supercharging stations by the end of 2024.
• Enter the pure electric vehicle market and develop a new 800V pure electric platform.

Challenges:

• Intensifying market competition, especially as traditional automakers accelerate electrification.
• Fluctuations in raw material costs may affect profit margins.
• Need for continuous large R&D investments to maintain technological leadership.
• Potential uncertainties from policy changes and subsidy reductions.
• Global supply chain fluctuations may affect production and delivery.

XPeng (XPEV)

Why it's considered a DeepSeek-related stock

XPeng, as a leading smart electric vehicle company in China, has deep expertise and continuous innovation in artificial intelligence and autonomous driving technology. The company is committed to applying AI technology to the automotive field and has developed a fully self-developed intelligent driving system, XNGP, and an intelligent cockpit system, which highly aligns with DeepSeek's development direction in the AI field.

Company Overview

Founded in 2015, XPeng is headquartered in Guangzhou. The company was co-founded by He Xiaopeng, Xia Heng, and He Tao, with team members from the automotive and internet technology fields. XPeng focuses on the design, development, manufacturing, and sales of smart electric vehicles, targeting tech-savvy middle-class consumers. The company is listed on the New York Stock Exchange and the Hong Kong Stock Exchange.

Key Technologies/Products/Services

1. Intelligent Driving System XNGP: Self-developed advanced driver assistance system, supporting nationwide intelligent navigation assisted driving.
2. Intelligent Cockpit System XOS: Operating system providing intelligent voice interaction, in-car entertainment, and other functions.
3. Electric Vehicle Product Line: Includes multiple smart electric vehicle models such as P7, G3, and P5.
4. Supercharging Station Network: Self-built charging infrastructure, including S4 super fast charging stations.
5. Internet of Vehicles and OTA Updates: Continuously optimizing vehicle performance and functionality through software updates.

Market Position

XPeng is one of the major players in China's new energy vehicle market and has strong competitiveness in the mid-to-high-end smart electric vehicle segment. The company has a certain market share in the domestic market and is actively expanding into overseas markets, including Europe and the Middle East. In terms of intelligent driving technology, XPeng is an industry leader.

Financial Performance

• Key Metrics

  • Q3 2024 Total Revenue: RMB 10.1 billion
  • Q3 2024 Vehicle Deliveries: 46,533 units
  • Gross Margin: 15.3% (Q3 2024)

• Revenue Trends XPeng's revenue shows a continuous growth trend. Q3 2024 total revenue increased by 18.4% year-over-year and 24.5% quarter-over-quarter.

• Profitability Although the company is still in a loss-making state, the loss margin is gradually narrowing. Q3 2024 net loss was RMB 1.81 billion, a significant reduction from RMB 3.89 billion in the same period last year.

Future Outlook and Challenges

Outlook:

1. Deep Application of AI Technology: XPeng plans to launch multiple new models equipped with AI system technology in the next three years to maintain its technological leadership.
2. Internationalization Strategy: Accelerate global market expansion, aiming to enter more than 60 countries and regions.
3. Product Line Expansion: Plans to launch new or updated models every quarter to enrich the product matrix.
4. Technological Innovation: Continue to invest in R&D, especially in autonomous driving and intelligent cockpit areas.

Challenges:

1. Intensifying Market Competition: The new energy vehicle market is becoming increasingly competitive, with the entry of traditional automakers and emerging technology companies.
2. Price Pressure: The industry may face a price war, putting pressure on profit margins.
3. Technological Innovation: Need to maintain technological leadership to meet rapidly changing market demands.
4. Supply Chain Management: Supply chain issues such as chip shortages may affect production and delivery.
5. Policy Changes: Adjustments to new energy vehicle subsidy policies may affect market demand.

NIO (NIO)

Why it's considered a DeepSeek-related stock

NIO, as a leading smart electric vehicle manufacturer in China, continues to invest in cutting-edge technologies such as artificial intelligence, autonomous driving, and intelligent cockpits. This aligns with DeepSeek's technological development direction in deep learning and AI applications.

Company Overview

Founded in November 2014, NIO is a manufacturer focused on high-end smart electric vehicles. Headquartered in Shanghai, the company has R&D centers in the United States, the United Kingdom, and Germany. NIO is committed to providing users with high-quality smart electric vehicles and an innovative user experience.

Key Technologies/Products/Services

• Smart Electric Vehicles: Including models such as ES8, ES6, EC6, and ET7.
• Self-Developed Technologies:
  • NIO Pilot autonomous driving assistance system.
  • SkyOS full-domain operating system for vehicles.
  • Self-developed chips: "Yang Jian" LiDAR master control chip and NX9031 intelligent driving chip.
• Battery Swap Service: Unique battery replacement network.
• NIO Power Charging Solutions.
• NIO Life Lifestyle Brand.

Market Position

NIO holds a leading position in China's high-end electric vehicle market. In the pure electric vehicle segment priced above 300,000 yuan, NIO's market share reaches nearly 60%, far exceeding that of traditional luxury brands.

Financial Performance

• Key Metrics

  • Q3 2024 Total Revenue: 18.6735 billion yuan
  • Gross Margin: 10.7%
  • Vehicle Gross Margin: 13.1%

• Revenue Trends Revenue slightly declined year-over-year but increased quarter-over-quarter. Q3 2024 total revenue decreased by 2.1% year-over-year but increased by 7.0% quarter-over-quarter.

• Profitability NIO is still in a loss-making state. Q3 2024 net loss was 5.0597 billion yuan, an 11.0% increase in losses year-over-year.

Future Outlook and Challenges

Outlook:

• Targeting 100% sales growth in 2025.
• Planning to achieve full-year profitability in 2026.
• Continuing to invest in technological innovation, such as 900V fast-charging technology and a new generation of battery systems.
• Expanding the multi-brand strategy, including sub-brands like ONVO and Firefly.

Challenges:

• Intense market competition, especially from the electrification transformation of traditional luxury brands.
• Continued R&D investment makes it difficult to achieve profitability in the short term.
• Need to further improve production efficiency and supply chain management to improve gross margins.
• Global economic uncertainty may affect the demand for high-end electric vehicles.

Kingsoft Cloud (KC)

Why it's considered a DeepSeek-related stock

Kingsoft Cloud is considered a DeepSeek-related stock mainly because of its layout in artificial intelligence and cloud computing. With DeepSeek's breakthroughs in the field of AI large models, Kingsoft Cloud, as a cloud service provider, is expected to benefit from the popularization of AI applications, especially in providing AI-related cloud infrastructure and services.

Company Overview

Kingsoft Cloud is a well-known independent cloud service provider in China. Founded in 2012, it is dual-listed on the Nasdaq (stock code: KC) and the Hong Kong Stock Exchange (stock code: 3896). The company provides comprehensive cloud computing services, including public cloud and industry cloud solutions, with operations spanning multiple countries and regions worldwide.

Key Technologies/Products/Services

• Public Cloud Services: Including infrastructure services such as cloud servers, cloud storage, databases, and CDN.
• Industry Cloud Solutions: Providing customized cloud services for vertical industries such as gaming, video, government, healthcare, and finance.
• AI Cloud Services: Providing AI development platforms, machine learning services, and deep learning platforms.
• Big Data Services: Providing data processing, analysis, and visualization tools.
• Edge Computing Services: Supporting IoT and 5G application scenarios.

Market Position

Kingsoft Cloud was once one of the top three players in China's cloud service market, but its market share has declined in recent years. Facing fierce competition from giants like Alibaba Cloud and Tencent Cloud, Kingsoft Cloud is reshaping its market position by focusing on high-growth areas like AI. In certain vertical industries such as gaming cloud and video cloud, Kingsoft Cloud still maintains strong competitiveness.

Financial Performance

• Key Metrics

  • Q3 2024 Total Revenue: RMB 1.886 billion
  • Adjusted EBITDA Margin: 9.8%
  • Gross Margin: 16.1%

• Revenue Trends After a period of decline, Kingsoft Cloud's revenue is showing signs of recovery. Q3 2024 revenue increased by 16.0% year-over-year, mainly driven by the rapid growth of AI-related businesses.

• Profitability The company's profitability is gradually improving. Q3 2024 adjusted EBITDA turned positive for the first time, reaching RMB 185 million, and the adjusted EBITDA margin significantly improved from -2.8% in the same period last year to 9.8%.

Future Outlook and Challenges

Outlook:

• AI-Driven Growth: With the popularization of AI technology, Kingsoft Cloud is expected to gain new growth momentum from providing AI infrastructure and services.
• Industry Cloud Opportunities: There is significant room for development in segments such as government cloud and state-owned enterprise cloud.
• Technological Innovation: Continuously invest in the research and development of edge computing, big data, and AI technologies to enhance competitiveness.

Challenges:

• Fierce Competition: Facing competitive pressure from giants like Alibaba Cloud and Tencent Cloud, maintaining market share is difficult.
• Profitability Pressure: Although profitability is improving, it is still necessary to continue optimizing the cost structure and improving operational efficiency.
• Technological Iteration: Need to keep up with the rapidly developing cloud computing and AI technologies to maintain technological leadership.
• Customer Dependency: Need to reduce reliance on a few large customers and expand a more diverse customer base.

Xiaomi (1810.HK)

Why it's considered a DeepSeek-related stock

Xiaomi is considered a DeepSeek-related stock primarily because of its active layout in the fields of artificial intelligence and edge computing. The company has not only made substantial investments in AI and the Internet of Things (IoT) but has also strengthened its AI large model team by recruiting core researchers from DeepSeek at high salaries. These initiatives demonstrate that Xiaomi is actively embracing AI technological innovation and is poised to benefit from breakthroughs in AI technologies like DeepSeek.

Company Overview

Xiaomi is a global technology company centered around smartphones, smart hardware, and an IoT platform. Founded in 2010, the company has grown to become the world's third-largest technology internet company and has been included in the Fortune Global 500 list multiple times. Xiaomi's business encompasses smartphones, smart homes, IoT devices, internet services, and its recently ventured into the smart electric vehicle sector.

Key Technologies/Products/Services

• Smartphones: Including Xiaomi series, Redmi series, etc.
• IoT and Consumer Electronics: Smart TVs, laptops, smart home devices, etc.
• MIUI Operating System
• Internet Services: Xiaomi App Store, Xiaomi Browser, Xiaomi Video, etc.
• Smart Electric Vehicles: SU7 series
• AI Technology: Significant investments in R&D, including edge AI and large models.

Market Position

• Smartphone Market: Global shipments have consistently ranked in the top three for 17 consecutive quarters.
• China Market: Smartphone market share of 13.7%, ranking fourth.
• IoT Platform: One of the world's largest consumer-grade IoT platforms.
• Globalization: Smartphone shipments rank in the top three in 52 countries and regions.

Financial Performance

• Key Metrics:
  • Q3 2024 total revenue: 92.5 billion yuan, up 30.5% YoY.
  • Adjusted net profit: 6.3 billion yuan, a record high for a single quarter.
• Revenue Trends: Achieved positive year-on-year growth for six consecutive quarters.
• Profitability: Profitability continues to improve, and diversified business structure enhances risk resistance.

Future Outlook and Challenges

Outlook:

• AI Technology Integration: Expected to reduce AI inference costs through technologies like DeepSeek and enhance edge AI applications.
• Smart Vehicle Business: SU7 series has delivered over 150,000 units, becoming a new growth point.
• Globalization Strategy: Continue to expand overseas markets and enhance international brand influence.
• IoT Ecosystem: Further expand and deepen the smart home ecosystem.

Challenges:

• Technological Innovation Pressure: Need for continuous R&D investment to maintain competitiveness.
• Intense Market Competition: The smartphone and IoT markets are becoming increasingly competitive.
• Global Economic Uncertainty: May affect the demand for consumer electronics products.
• Regulatory Risks: Facing a constantly changing regulatory environment for the technology industry worldwide.

Disclaimer: This post is for informational purposes only and is not investment advice. Stocks or financial products mentioned may carry significant risks. Please make investment decisions carefully and at your own risk.

Best of luck with your investments!