The next AI-powered gold rush is being prepared in a place most traders aren’t looking.
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Two months, $10 million, and a team of less than 200 engineers.
That’s all it took for one Chinese company, which most of us have probably never heard of, to spark existential panic in the AI race.
Back in January 2025, DeepSeek achieved the unthinkable. The startup has dramatically reduced training expenses on its R1 AI model at a time when spending among big players from OpenAI to Anthropic already exceeds the GDP of many small countries.
And here’s the kicker: DeepSeek built its models using weaker chips, much weaker.
China has imposed trade restrictions on its exports of artificial intelligence chips. They were content with what they had. And it worked.
Needless to say, the DeepSeek hack is massive It wasn’t Welcome news for incumbents like Nvidia.
Within days of DeepSeek’s offering, Nvidia shares lost more than $600 billion in market value. This remains the largest decline for a single company in the history of the US stock market.
The news wasn’t much better for players like AMD, Google, and Microsoft. Billions more were wiped off the board within days.
It is true that all of these companies still control the largest share of the AI market today. Even Nvidia has mostly recovered from the shock.
But DeepSeek was a warning that something much bigger was happening.
The stadium rendering problem in artificial intelligence
For years, everyone in the AI field was convinced that you needed a huge, expensive, sprawling process to build intelligent models.
This came straight from Google’s 2017 white paper on adapters. The conventional wisdom was simple: more data, more computing power, bigger chips, bigger budgets.
By 2025, the industry will have pumped more than $252 billion into global investment in AI. We’re talking massive data center constructions, the latest hardware on the planet, and teams of researchers earning Fortune 500 salaries.
The doctrine was closed in: More money = better AI.
Then DeepSeek came into the picture and upended years of conventional wisdom about AI development.
They have proven that you can build a similar model with efficiency, smarter engineering, and less waste.
Sound familiar? Think about what happened with Blockbuster and Netflix. Or how cloud computing has disrupted entire industries. Every major transformation follows this pattern:
Current players believe in their old playbook. Then someone comes along with a better system. Suddenly everything changes.
This is the moment we are in now as the next wave of investment in AI takes shape.
Instead of sitting on the sidelines, I want to guide you on where the next major opportunities in technology are shaping up right now.
Because just as DeepSeek sparked massive fluctuations in… AI shares In the past year, I’ve seen a whole host of potential new trading setups extracted from the same playbook.
That’s why I’m preparing a special presentation with my friend and colleague Mark Chaiken. We show you one system that analyzes more than 20 different factors, and it’s a technical factor and Essential – and turns all that noise into something simple: rising. neutral. bearish.
We call it the convergence operator. All in the special webinar we’ll be hosting on May 28thy 8pm EST. You can reserve your place for it here.
Now, let me show you why DeepSeek’s breakthrough has turned the entire AI race on its head.
Here’s what MIT just confirmed
In October, MIT dropped some research that should have made every AI investor sit up and take notice.
Their conclusion? Large, computationally intensive models from OpenAI and Anthropic yield diminishing returns. You can keep spending money on larger models, but the performance gains slow down.
Meanwhile, smaller, more efficient models running on modest hardware — exactly what DeepSeek pioneered — will continue to improve.
This is not just a technical shift. This is a shift in the market. And it’s reshaping which AI stocks will win and which will fall behind as I write.
When the DeepSeek story broke, my first instinct wasn’t to sell my technology holdings out of panic. Had to dig deeper.
I continued to live Master of Commerce To break down what was really happening. Because here’s what I know: most traders don’t see the actual catalyst. They see the headlines. Then they interact.
But real money is made by those who expect.
The real question is not whether AI will grow from here. The question is: Which companies are building the next wave of AI?
It’s not just the big names that everyone knows. They are the platforms that make AI faster, cheaper, and more accessible.
They’re the companies that are getting rid of GPU bloat. Gamers reduce computing costs. Innovators who discovered the efficiency game.
Major names like Nvidia and Taiwan Semiconductor have achieved incredible success. But if efficiency improves — which MIT researchers just told us — demand for expensive, sophisticated devices could face real headwinds.
This creates an opportunity. This is where the smarter money flows.
AI deals that break through the hype
When Chinese Technology stocks They were beaten, I contacted JD.com as My trade for the day in my free daily program, Masters in Trading Live.
For those who don’t know, JD is an Amazon-like retail giant that is developing its own full-stack AI solution to power everything from purchases to recommendation algorithms.
My thesis was clear and direct: President Trump was headed to China. I firmly believe he was not traveling to Beijing to deliver bad news. This means supportive market results for struggling Chinese technology names.
We didn’t have to wait long. The Shanghai Composite Index opened strong on Monday, led by a rise in Chinese technology stocks. Within days, this trade reached double digits.
But that’s what I love about this setup – we just didn’t get lucky. We were using volatility strategically. We identified the trigger, positioned it before it hit, and rode the move.
Then he came Advanced notice on iShares Expanded Tech-Software ETF (Value added tax)— Basically your play on the biggest Chinese tech stocks like Baidu and a lot of other players in this space.
I recommended it in early May. After two weeks? We’re up 8%. Our organized trade provided exactly what we needed.
Style here is crucial: We use volatility to build winners. We do not run from it.
This volatility will increase as this next wave of AI stocks reshapes the landscape.
That’s why I’m focusing on three areas where better models, faster iteration, and more data can fundamentally change outcomes — AI-powered drug discovery, precision medicine, and energy.
AI drug discovery names such as Oud pharmaceutical preparations (RXRX), sequential treatment (RLAY)and stay away (ABS) We build platforms where AI is at the center of the discovery process.
Of course, this infrastructure only works if you have large datasets that can be used to train and validate these systems. This is where I track other stocks, Tempus II (Tim)comes.
TEM is building one of the largest clinical data libraries in precision medicine – spanning oncology, diagnostics and genomics. This is constantly expanding, streamlining, and correlating with real-world results, making it significantly more valuable for training models.
The more data you have, the better your models become. The better the models become, the more useful they will be in clinical settings.
Training and operating these systems requires enormous amounts of energy. Data centers are already seeing an increase in demand, and this trend is accelerating as models become more complex.
This is where you love names Bloom Energy (He is), ITRON (Eatery)and Matrix techniques (ARRY) Come here. Each of these players focuses on on-site power generation, especially for data centers that need reliable, scalable power.
Each of these choices represents an opportunity to seize ground in building AI.
Of course, you’ll notice that none of these picks besides the Jordanian Dinar are Chinese stocks. And there is a reason for that.
Unless you’re trading stocks like Baidu or JD.com, many of these picks aren’t currently investable. But there are a few marketable names that are accelerating the next phase of scalable AI as I write.
There are many startups seeking a public listing – some local, some in other markets such as China. This means there is a whole host of asymmetric trading setups that come with it.
The land grab that is happening now
China has been quietly building an AI empire for years.
Shanghai’s Pudong district alone has more than 600 AI companies across the founding, technical, and applied layers. Their combined market value? About 91 billion yuan.
China is now producing AI startups faster than Silicon Valley.
The infrastructure is there. The talent is there. Capital is flowing. And most Western traders have no idea at all.
As the next wave of AI players hit the public markets, we will see volatility rise. Earnings surprises. Sector rotation. This is the kind of circumstance where small plays become… Most effective Trade settings for smart traders.
This is why I call convergence
I crunched the numbers with my colleague Mark Chaikin, and what we discovered is nothing less than a major shift being shaped by technology.
Here’s the truth: My experience is finding trading setups based on volatility. Mark’s genius lies in trend forecasting. He reads options like a book – he can predict whether the next bullish or bearish leg is about to break out.
Together we have built a new system that analyzes more than 20 different technical factors and Essential – and turns all that noise into something simple: rising. neutral. bearish.
When we apply this to the current wave of AI stocks, we can determine this exactly Where volatility will give us profitable moves.
At the world premiere of the film Convergence operator On May 28thyYou will see it with your own eyes.
The markets are shuffling the deck right now. The old rules of the game for AI are crumbling. New players are emerging. And traders who position themselves before The audiences that move are the ones that will make the real money.
This event is for everyone — whether you’re following my work in the Master of Commerce program, Mark’s research at Chaikin Analytics, or just walking down the street.
You’ll see how two plus two actually equals five when you combine the right tools with the right timing.
Remember: creative commerce wins.
Mark your calendar now and make sure you secure your spot before the event starts. Join us on May 28 by clicking here to reserve your seat now.
Jonathan Rose
founder, Master of Commerce
