DeepSeek Server Strained, Triggering Limit Up for Computing Power Stocks

On February 7th, stocks linked to computing power experienced significant gains. Companies like Inspur Information, Yonyou Network, and Eastern Materials reached their daily limit increases. Capital Online saw a notable 20% daily limit up. Other prominent players in the sector, such as Cambricon Technologies, CloudWalk Technology, Digital China, and Foxconn Industrial Internet, also registered increases exceeding 6%.

This surge in stocks coincides with news that DeepSeek is facing tight server resources. As a result, the company decided to temporarily halt API service recharge on the evening of February 6th. When users attempted to access the DeepSeek open platform, they found the recharge button disabled, indicated by its grayed-out status. The official communication from DeepSeek stated that this action was taken to prevent disruption to users’ business operations, assuring that previously loaded recharge amounts remain usable.

As of February 4th, 2025, public data reveals that DeepSeek had 22.15 million active daily users, reaching approximately 41.6% of the user base of ChatGPT, which stands at 53.23 million. This impressive statistic also surpasses Douyin’s 16.95 million daily active users.

Despite the popularity of DeepSeek, there are ongoing challenges, as a large influx of new users is rapidly exhausting the computing power of its servers. This exponential growth in user demand is straining the current resources.

Experts highlight that as artificial intelligence technologies progress, the complexity and size of AI models are enlarging, which significantly heightens the computing power requirements for both training and inference.

The news regarding DeepSeek's server shortages has sparked positivity among several computing infrastructure providers, particularly server and chip manufacturers like Inspur Information, as they anticipate a rise in order volumes. Software and cloud service providers stand to benefit as well, with opportunities to offer computing resource leasing services. This demand is also likely to prompt software companies to ramp up research and development efforts, improve computing management, and enhance technology.

Overall, there is a noticeable surge of investment flowing into industries tied to computing power, making related stocks increasingly popular.

Nonetheless, the computing power shortages exposed by DeepSeek's situation this time appear to be a specific incident due to skyrocketing demand. In the short term, the overlap of supply and demand in China’s intelligent computing market may lead to localized excess capacities, with some small and medium enterprises potentially sitting on unutilized computational resources due to market speculation.

Looking forward, continuous advancements in technologies like AI are expected to drive ongoing demand for computing power, which might face challenges related to constraints. Analyst firms, like Century Securities, anticipate that the current domestic needs for computing power—driven by increasing demand for inference terminals—will provide prospects for local computing chip manufacturers. They suggest focusing investments on semiconductor foundries, cloud service providers, computing resource leasing firms, domestic chip makers, companies that outsource server manufacturing, and server communication segments.

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

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DeepSeek, computing, stocks