DeepSeek Server Strained, Multiple Computing Power Stocks Hit Limit Up

On February 7th, concept stocks related to computing power continued to rise. Stocks such as Inspur Information, Yonyou Network, and Eastern Materials hit the daily limit up. Capital Online achieved a 20cm daily limit up. Cambricon Technologies, CloudWalk Technology, Digital China, Sugon Information Industry Co., Ltd., Foxconn Industrial Internet and others rose by more than 6%.

In terms of news, due to tight server resources, DeepSeek temporarily suspended API service recharge on the evening of the 6th. When logging into the DeepSeek open platform, the recharge button is displayed in gray and unavailable status. The official statement indicated that this was done to avoid affecting users’ business operations; existing recharge amounts can still be used.

Public data shows that as of February 4th, 2025, DeepSeek had an active user base of 22.15 million users per day. This number has reached 41.6% of ChatGPT’s daily active user base of 53.23 million and successfully surpassed Douyin’s daily active user base of 16.95 million users.

There are still a large number of users continuously joining DeepSeek which rapidly consumes its server computing power resources leading to an exponential increase in demand for computing power.

Experts also point out that as AI models continue to evolve, the scale of model parameters is constantly expanding in order to improve performance, leading to a significant increase in computing power required for training and inference.

The above news has brought benefits to many computing infrastructure suppliers such as server and chip manufacturers like Inspur Information, with the expectation of increased orders. In the software and cloud services sector, cloud service providers can profit by offering computing resources leasing services while driving related software companies to increase research and development efforts, enhance computing management, and optimize technology. In terms of investment, funds are flowing rapidly into industries related to computing power, making related concept stocks popular.

However, the issue of insufficient computing power revealed by DeepSeek this time is a special case resulting from explosive demand growth. In the short term, the current overall supply-demand balance in China’s intelligent computing market may even lead to localized excess capacity issues where some small and medium-sized enterprises end up with idle computational resources after hoarding chips following trends.

In the long run, with continuous development and application expansion of technologies like AI, it is expected that there will be a continuous growth in demand for computing power which could potentially face challenges due to shortages. Century Securities believes that against the backdrop of overseas restrictions on AI chips production domestically driven surge in inference terminal demands will create opportunities for domestic compute chip manufacturers to cater corresponding needs for computational power. It is recommended to focus on semiconductor foundries (manufacturers), cloud service providers; compute resource leasing firms; domestic compute chip producers; server manufacturing outsourcing partners; as well as server interconnection communication segments.

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

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