Happy Chinese New Year!

Well, maybe not for AI stocks...

Happy Chinese New Year to all who are celebrating as the year of the Snake is upon us.

May you huat big big.

But do you know who didn’t huat over the CNY? AI stocks! Looks like they got bitten by a Chinese chatbot called DeepSeek.

And the bloodbath was intense. Find out in the Visual of the Week of what I think about it, and also a stock comparison tool that could cut your research time!

Big Hits [U.S.] 💵

Moving on, here are the news that shocked the world…

U.S. AI: AI stocks in the U.S. suffered a deep rout in their share prices, with Nvidia declining by 17% after the release of DeepSeek’s AI chatbot [Read More]

Tesla: Well, Tesla’s 4Q 2024 results disappointed. Profits were down by 71% to US$2.3 billion as the company benefited from a one-time tax benefit [Read More]

Starbucks: Starbucks’ results for 4Q 2024 beat expectations but its turnaround is still in progress. Revenue was flat from last year, while traffic to its stores declined by 6% [Read More]

Novo Nordisk: Share price rose by 7% after the company revealed that its obesity drug demonstrated weight reduction in 22% of its patients after 36 weeks [Read More]

Google x HTC: Google is buying part of HTC’s extended reality headsets and glasses for US$250 million [Read More]

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Big Hits [Asia] 📊

Here are the news covering the Asia market…

DeepSeek: DeepSeek, a Chinese AI startup is going deep in the paint, after it released its own AI chatbots that were comparable to the best at a fraction of the cost [Read More]

Singapore AI: Singapore AI-related data centre REITs could be negatively impacted also by DeepSeek as its cost-effectiveness means less demand for data centres [Read More]

AIMS APAC REIT: Revenue for the company increased by 5.7% to SG$139.1 million supported by positive rental reversions [Read More]

DBS: DBS spent SG$295 million to increase its stake in Shenzhen Rural Commercial Bank to 19.4% to expand its exposure to the Greater Bay Area [Read More]

Keppel REIT: Keppel REIT’s distribution per unit was down by 3.4% despite higher property income as borrowing costs increased by 34% [Read More]

Analyst Reports 📝

See below for our handpicked analyst reports:

Stock

Headline

Link

Meta

Strong 4Q 2024 results with more positive AI developments

Click Here

Visa

Steady long-term fundamentals

Click Here

Shengyi Tech

Driven by AI developments

Click Here

SEA Ltd

Steady earnings growth from all segments

Click Here

Frasers Centrepoint Trust

Steady fundamentals with almost-full occupancy

Click Here

Visual of the Week 📹

It was the best of days.
It was the worst of days.
The bloodbath is here.
DeepSeek is here.

It was a chilly Monday morning. Nvidia woke up thinking that this week will be like usual. Analysts saying it is the best AI company to invest now and share price go rocket up.

But something was amiss.

Halfway across the world. A not-so-well-known Chinese AI startup called DeepSeek, launched its free chatbot to the public.

And it exploded from there.

It reached number 1 on app stores globally, with 2.6 million downloads across the App Store and Google Play.

Its selling point? It’s free and it outperforms other AI chatbots in the market, according to Statista.

Chinese language performance of DeepSeek R-1model and similar models in 2025, by benchmark

It also cost a fraction of the price charged by other AI providers. This could be a game-changer as many people have always thought that AI development is dependent on expensive roll-outs of computing power and data centres.

But DeepSeek with its cost-efficient model has upended those expectations.

Nvidia, Broadcom and Micron were the first to be heavily affected as they both provide GPUs to power AI computing power. Then, it was TSMC who helps produces all of these components.

Microsoft and Alphabet were affected but not by much, as investors are now assessing whether DeepSeek will be a big challenger to their AI chatbots.

Time can only tell who will win in this AI arms race.

Tool of the Week

The roof of all unhappiness is from comparison, by Søren Kierkegaard.

But it is not so in investments.

We all have limited funds to invest. And we want to pick the best ones to do so. I always find myself analysing similar companies to find out which ones are the most worth it.

And recently, I have found a useful stock comparison tool from ShareInvestor that allows me to do this. Oh, if you want to sign up for an account, use my code JYSCA5

When I was trying to compare the three Singaporean banks to find some potential value, I utilise this tool to look at the consensus estimates.

From here, I could tell that UOB probably has more potential and it will probably be my focus to research more about the company.

If you are interested in how to level up your investments, use my code JYSCA5 to sign up for a ShareInvestor account!

Cheers,
James Yeo