Gold's About to Go Parabolic? (Trump's First Term Sent It Soaring)

During President Trump's first term, tariffs & rate cuts sent gold soaring 57%. Now, Trump is using the same playbook. Are you expecting different results? Hint: Gold is now surging, and experts predict gold could hit $4,000... even $10,000! Move funds from your IRA & 401(k) into gold--TAX & PENALTY-FREE--while you still can!

How DeepSeek's Breakthrough Is Changing The Landscape For Multi-Industrials

Shivani Kumaresan
January 28, 2025

BofA Securities analyst Andrew Obin has provided his view about the implication of DeepSeek on multi-industrial stocks and reiterated a Buy rating on the shares of Vertiv Holdings Co (NYSE:VRT), GE Vernova Inc (NYSE:GEV) and Eaton Corporation PLC (NYSE:ETN) with a price forecast of $165, $485 and $410 respectively.

In December, Chinese startup DeepSeek introduced its latest AI model, DeepSeek-V3, which has shown comparable performance to OpenAI’s GPT-4 across various benchmark tests, noted the analyst.

According to the analyst, Investors are wary that this technological breakthrough could result in reduced spending on AI infrastructure and power generation.

Also Read: Jensen Huang Loses $20B In Wealth: How DeepSeek Hit Nvidia Stock And World’s Richest People

DeepSeek’s inference costs ($/million tokens) are approximately 70-90% lower than those of other AI models. The critical factor to monitor will be the capital expenditure plans of cloud service providers for 2025-2026, noted the analyst.

The technical report states that V3 utilized just 2.8 million GPU hours. At a rental rate of $2 per hour, this would total $5.6 million, per the analyst.

However, the analyst opined that DeepSeek-V3 was “distilled” using the previously launched DeepSeek-R1 model. Some media reports suggest that DeepSeek may have also used other open-source models, such as Meta Platforms Llama, implying that the actual training cost could be significantly higher than reported.

Venture capital investor Marc Andreessen referred to DeepSeek-R1 as a “Sputnik moment” for AI progress. However, the analyst interprets the Sputnik comparison as favorable for AI infrastructure companies.

Following the launch of Sputnik (October 4, 1957), the U.S. Federal space R&D budget grew significantly, from $0.5 billion annually to over $10.5 billion in 1958.

When a new technology boosts efficiency, it typically reduces demand. However, it often leads to increased consumption, a phenomenon known as Jevons Paradox.

A similar situation occurred in U.S. steel production after the Bessemer process was introduced: between 1875 and 1900, steel prices dropped by around 90%, while production surged from 0.4 million tons per year to 60 million tons per year.

The analyst notes this will apply to the AI sector as well. Reduced training costs accelerate model improvements, and enhanced models create more use cases, resulting in greater inference demand.

For instance, the cost of GPT-4 output tokens has dropped by approximately 80% in under a year since its launch.

Cloud service providers are still experiencing growth in non-AI revenue, with Microsoft Corp (NASDAQ:MSFT) Azure non-AI revenue rising by 22% year-over-year in the quarter ended September.

Colocation companies, which make up about 50% of global data centers, continue to benefit from favorable market conditions, concluded the analyst.

Read Next:

  • DeepSeek’s Low-Cost Model Reshapes AI Landscape: Experts Predict Shift To ‘Application Layer’

Photo via Shutterstock: KhunkornStudio.

Continue Reading...

Popular

Small Plane Crashes In Pennsylvania Retirement Facility Parking Lot After Pilot Reports 'Open Door'

A Beechcraft Bonanza carrying five people crashed Sunday afternoon near a retirement village south of Lancaster Airport in Pennsylvania, according to Federal Aviation Administration officials. All passengers survived and were transported to hospitals for treatment.

Trump's tariff tactics carry higher economic risks than during his first term

WASHINGTON (AP) — When Donald Trump started the biggest trade war since the 1930s in his first term, his impulsive combination of threats and import taxes on U.S. trading partners created chaos, generated drama -- and drew criticism from mainstream economists who favor free trade.

Forget Nvidia - This Odd Tariff Play Is Now Going Viral - Ad

As President Trump slaps China with new tariffs, the Fed is boxed in--and gold is skyrocketing just like it did during Trump's first term. JPMorgan just grabbed $4 Billion in gold bars... should you? Discover a "Tariff Assistance Loophole" to move funds from your IRA & 401(k) into gold--tax-free!

Europe-Based UCB's Bimzelx Data Reveals Sustained Skin Clearance In Inflammatory Skin Disorders

UCB's Bimzelx shows sustained efficacy in psoriasis and hidradenitis suppurativa, with high skin clearance rates and improved symptoms over long-term trials.

Trump signs executive order to establish government bitcoin reserve

President Donald Trump signed an executive order Thursday establishing a , a key marker in the cryptocurrency's journey towards possible mainstream acceptance.

Trump's Tariff Move Has Created a Massive Opportunity for 401(K)S - Ad

As President Trump slaps China with new tariffs, the Fed is boxed in--and gold is skyrocketing just like it did during Trump's first term. JPMorgan just grabbed $4 Billion in gold bars... should you? Discover a "Tariff Assistance Loophole" to move funds from your IRA & 401(k) into gold--tax-free!

Palantir's Head Of Defense Warns Of China's War Preparations: 'We're Not Taking It Seriously'

Palantir Technologies Inc. Head of Defense and former Congressman Mike Gallagher is sounding alarms about China's military intentions, warning that the U.S. is failing to adequately prepare for potential conflict.

Tesla Chair Robyn Denholm Sells Over $30 Million Worth Of Stock As Automaker Grapples With Macroeconomic Uncertainties, Increased Competitive Heat

Tesla Inc. Chair Robyn Denholm has sold approximately $33.7 million worth of the electric vehicle maker's stock, according to a filing with the U.S. Securities and Exchange Commission on Monday. The sale involved 112,390 shares, the same amount she offloaded last month for gross proceeds of around $43.2 million.

The Gold Shift No One's Talking About - Yet - Ad

Massive gold shipments are quietly moving from London to the U.S.--no headlines, no explanations. Could a full-scale audit or a new gold-backed system be coming? Smart money isn't waiting. My gold strategy is already doubling physical gold's returns this year.

AI pioneers who channeled 'hedonistic' machines win computer science's top prize

Teaching machines in the way that animal trainers mold the behavior of dogs or horses has been an important method for developing artificial intelligence and one that was recognized Wednesday with the top computer science award.

Iranian government official who was key to 2015 nuclear deal resigns under hard-liner pressure

TEHRAN, Iran (AP) — A former Iranian foreign minister who was key to the country's 2015 nuclear deal with world powers reportedly tendered his resignation on Monday from the government of reformist , caving in to pressure from hard-liners.

13-Second Trump Video Could Trigger AI Shock - Ad

Louis Navellier, the legendary investor who picked Nvidia before shares exploded as high as 3,423%... Just released a video with this 13-second Trump clip about the current AI boom. Please, do NOT buy any AI stock before watching that clip. What President Trump said in that clip could have implications for this AI boom.

Massive Losses For Crypto Traders As MELANIA Memecoin Plummets

A crypto trader has reportedly suffered a staggering loss of $15.68 million after trading the official memecoin of First Lady Melania Trump.

Freshpet Is Not Out Of The Woods On Consumption Trends, Analyst Says

JP Morgan analyst cuts Freshpet price forecast to $102 while maintaining a Neutral rating. Concerns over changing consumption trends and accuracy of estimates, but strong revenue growth and long-term potential. EBITDA and revenue growth estimates revised.

New Study: 50 Stocks Will Crash While 7 MAGA Stocks Will Soar - Ad

If you own any of these stocks -- directly or through mutual funds -- I want to encourage you to sell them before April 30th. I've compiled all 50 companies in my "MAGA Blacklist" report. Your retirement could depend on seeing this list.

Why should America worry about Trump? Try the price of eggs, say some Democrats

NEW YORK (AP) — As their party struggles to navigate the early days of Donald Trump's second presidency, some Democrats are convinced that their road to recovery lies in the price of eggs.

Steve Bannon Accidentally Revealed 'Secret' Trump Plan? - Ad

With one executive order, Trump could dismantle the rigged financial system--and return America to the gold standard. He's been stockpiling gold since 1974... should you? Discover the "Trump Loophole" to move funds from your IRA & 401(k) into gold--tax free!

Bitcoin Is Digital Gold But 'What's The Rationale For An XRP Reserve', Asks Peter Schiff: Cardano Founder Charles Hoskinson Says Trump Made The Right Decision

Renowned economist Peter Schiff questioned the inclusion of XRP (CRYPTO: XRP) in the cryptocurrency reserve announced by President Donald Trump on Sunday while acknowledging the rationale behind including Bitcoin (CRYPTO:

Merck Plans Regulatory Submission For Two-Drug Regime For HIV Infection By Mid-2025

Merck's DOR/ISL met primary efficacy and safety goals in two Phase 3 HIV trials. Marketing applications are planned for mid-2025.

Trump's Secret Plan to Reboot the Dollar Leaked? - Ad

Steve Bannon let slip 3 shocking words--and Wall Street panicked. According to Bannon, President Trump is poised to restore the gold standard, reset the dollar, and send gold soaring. Position yourself before it's too late! Claim your free 2025 Gold Guide and discover the Trump Loophole to move funds from your IRA & 401(k) into gold--tax-free!

Apple Delays Next-Gen Siri: 'It's Going To Take Us Longer Than We Thought' To Deliver AI Upgrades

Apple has delayed its next-gen Siri upgrade, citing the need for more development time, while internal reports suggest significant issues could push the AI-powered features back until iOS 20 or later.

US inflation may have slowed slightly last month but tariffs threaten reversal

WASHINGTON (AP) — U.S. inflation may have cooled a bit last month but it could be a short reprieve as President Donald Trump's are widely expected to keep prices elevated in the coming months.

Globetrotting CFA Discovers Top Four Gold Miners With 100X Upside Potential - Ad

Most CFAs sit at a desk... But one unusual CFA went all-in on gold investing 20 years ago... and accidentally positioned himself as the expert's expert for the current bull market. Garrett Goggin's research has led him to the the Top Four miners sitting on potential upside of 100X or more for the current gold mania. He's been offered as much as $100k by Hedge Funds.

Cathie Wood-Led Ark Invest Roblox, Roku, UiPath As Markets Take A Dip

Ark Invest made significant trades on Friday, selling shares of RBLX, ROKU, PATH and buying shares of IBTA, PSNL, ABSI, and RXRX.

Argentine retirees and soccer fans clash with police during protests against austerity measures

BUENOS AIRES, Argentina (AP) — Argentine retirees and fans of several soccer teams clashed with police Wednesday during a protest in front of Congress in the capital, Buenos Aires, against the economic policies implemented by the government of .

Warren Buffett's Investing Partner's Shocking Final Move - Ad

Before he passed away, Charlie Munger, Warren Buffett's investing partner of 60 years, was rumored to have quietly made one final investment... Up until now, it has remained hidden from the public. It's potentially the smartest, most profitable, and most under-valued AI investment you can make today.

MSTR Stock Plunges Over 6% In Monday Pre-Market: What's Going On?

The shares of Strategy Inc. (NASDAQ:MSTR) fell 6.1% during the pre-market trading session on Monday following a sharp decline in the price of Bitcoin (CRYPTO: BTC)

Activist groups urge UN probe of its Myanmar envoy after report alleges ties to Chinese companies

BANGKOK (AP) — Activist groups are calling for the United Nations to investigate its special envoy to Myanmar over possible conflicts of interest, after a report detailed her consulting company's alleged ties to Chinese mining and construction projects in the country.

Why Trump's Recent Moves Could Ignite a New Gold Standard - Ad

Donald Trump's bold policies are driving a hidden gold market boom. Garrett Goggin, a renowned precious metals expert with 20+ years of experience, reveals 5 explosive investment opportunities set to explode in this new era. Backed by triple-digit returns in 2024, Garrett's insights show you how to position yourself for wealth in 2025.

What's Going On With IonQ Stock Today?

IonQ shares are down amid broader tech sector weakness, despite recent breakthroughs in quantum computing and participation at SXSW.

South Dakota law raises questions about future of massive Midwest pipeline

SIOUX FALLS, S.D. (AP) — A new law in South Dakota prohibiting the use of eminent domain to acquire land for carbon capture pipelines of a proposed 2,500 mile (4,023-kilometer) project snaking through five Midwest states.

DOGE's Next Target Set To Hand 401K Savers A Windfall? - Ad

Musk's Department of Government Efficiency has already uncovered $55B in waste--and Trump's backing his plan to return $2T in savings to taxpayers. But why wait? Unlock a legal Trump IRS loophole to protect & grow your wealth NOW!

Kenya-based content moderators mourn Nigerian colleague who 'was desperate to go home'

NAIROBI, Kenya (AP) — Technology workers in Kenya held a vigil Tuesday for a colleague who died in unclear circumstances after she was unable to travel to her home in Nigeria for two years.

China imposes retaliatory tariffs on Canadian farm and food products

BEIJING (AP) — China on Saturday announced retaliatory tariffs on some Canadian farm and food imports, after Canada imposed duties in October on Chinese-made electric vehicles and steel and aluminum products.

March 20th: The NEXT 50X Nvidia Call - Ad

In 2016 Louis Navellier made a big prediction regarding Nvidia's GPUs... Its stock price was a split-adjusted $1 and went up more than 7,000% at its peak. Don't miss Louis NEXT BIG Nvidia call. (Plus 6 stocks you need to own before March 20th.)

Stock market today: Asian shares rebound after Trump pullback on some tariffs cheers investors

BANGKOK (AP) — Asian shares were mostly higher Thursday, tracking a rebound on Wall Street after pulled back on some of his tariffs hikes.

Dogecoin Plunges 9% But Top Analyst Believes Meme Coin Could Stage A 'Strong' Rebound In Case This Happens

Influential cryptocurrency analyst Ali Martinez anticipated a significant rebound for Dogecoin (CRYPTO: DOGE) despite the market slump on Sunday.

Exposed: 3 Cent Crypto to Explode March 24th? - Ad

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on March 24th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

Trump loves Gilded Age tariffs. It was a great time for the rich but not for the many

WASHINGTON (AP) — In President Donald Trump's idealized framing, the United States was at its zenith in the 1890s, when top hats and shirtwaists were fashionable and typhoid fever often killed more soldiers than combat.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright finstrategist.com
Privacy Policy | Terms of Service