In recent years, the realm of artificial intelligence (AI) has been predominantly defined by American tech powerhousesAmong them, ChatGPT has emerged as a significant player, showcasing remarkable language processing abilities and attracting an ever-increasing global user baseHowever, the recent entry of DeepSeek has shaken this seemingly established status quo in an astonishing mannerDeepSeek's model not only rivals ChatGPT's performance but reportedly surpasses it in certain aspects, all while being trained at a fraction of the cost.

The announcement of DeepSeek's capabilities sent shockwaves through the U.S. stock market, where investors greeted the news with skepticismFor years, Silicon Valley has wielded immense power in the AI sector, advocating the mantra “without computation power, there’s no leadership.” This philosophy has driven substantial capital into computation-centric technological sectorsThe rise of DeepSeek has compelled investors to reconsider the validity of this slogan, raising questions about whether it was merely a marketing ploy designed to lure in funding.

The atmosphere of uncertainty quickly permeated the capital markets, triggering significant volatility among tech stocksNVIDIA, the undisputed leader in the global AI computation chip arena, found itself at the forefront of the falloutAs a pivotal supplier of computational power for numerous AI initiatives, NVIDIA’s stock performance often acts as a barometer for tech stocks as a wholeOn the first trading day following the release of the DeepSeek model, NVIDIA's stock price plummeted sharply, dropping far more than anticipatedThis tumble dragged down the prices of various other tech stocks, particularly those tied to AI chip and device supply, on just that Monday, the market capitalization of the NASDAQ index evaporated by nearly a staggering $1 trillion, an eye-popping figure

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As of the preceding week, the NASDAQ had already dropped over 1.6%, with tech stocks experiencing a blanket rout that left investors shaken.

However, despite this turmoil, Wall Street giant Goldman Sachs presented a contrasting viewpointThey asserted that although tech stocks are seeing substantial sell-offs, the general economic outlook for the United States remains optimisticThe early wave of tech-dominated sell-offs is interpreted as a market overreaction to sudden news, a temporary fluctuation rather than a harbinger of impending bear markets.

Goldman Sachs strategist Peter Oppenheimer provided an in-depth analysis, drawing parallels with previous bear markets, which were predominantly triggered by investors' fears of economic recessions leading to expectations of declining corporate profitsCurrent conditions in the American economy, however, suggest a minimal likelihood of recession within the next twelve monthsWith the unemployment rate maintaining a low level and a stable job market supplying consumers with a reliable flow of income, consumer confidence remains relatively solidThis positive macroeconomic data provides a robust foundation for stable growth in the U.S. economy.

Oppenheimer further emphasized that as long as there are no significant economic disruptions, such as an escalation in geopolitical conflicts or major natural disasters, the softening of the stock market will likely remain limitedHistorical trends indicate that the current macroeconomic conditions actually bolster risk assets, particularly growth-oriented assets like tech stocksThe Chicago Mercantile Exchange's FedWatch tool reveals a 73% likelihood of interest rate cuts following the Federal Reserve's June meetingThis implies that although rates remained unchanged in January, economists broadly predict that the Fed will resume lowering rates at some point this year

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An interest rate cut would enhance market liquidity and lower corporate financing costs, signaling a positive development for the stock market.

Last week, Oppenheimer also issued a warning regarding the inflated valuations and concentration of risk within tech stocks in the current U.S. equity market, which presents certain dangersHe recommended that investors diversify geographically and refrain from concentrating all their funds in the U.S. market while also expanding investments in other sectors, such as healthcare and essential consumer goods, to spread investment risksNevertheless, he believes that over the next year, there is potential for further gains in the U.S. equity marketThe growth in valuations for U.S. tech stocks and large companies reflects their intrinsic strengths, including robust innovation capabilities and expansive market opportunities, rather than being driven by irrational exuberance that leads to bubbles.

However, it cannot be overlooked that as market competition intensifies and new emerging markets and industries continue to grow, the momentum of profit expansion will eventually waneThis shift in growth trajectories will further incentivize investors to diversify their portfolios, promoting a healthier and more stable evolution of the U.S. stock marketThe future pathway of the tech stock market is a compelling narrative to follow closely—will it bounce back onto an upward trajectory after episodes of turbulence, or will it continue to recalibrate amid the interplay of complex factors? This remains a keen point of observation for market participants.