Investing in AI stocks has brought opportunity in a rapidly changing environment. The sudden appearance of DeepSeek's models, which it created with older and less advanced processors, has lowered the cost of creating powerful artificial intelligence (AI) systems.

Share prices of Microsoft (NASDAQ: MSFT) were down 6% immediately following its fiscal second-quarter earnings report on Jan. 29. The software leader delivered revenue and earnings that topped Wall Street's expectations,

For Nvidia, the most widely accepted thesis explaining the rapid rise of its stock is that the company will be the engine behind the AI boom. The AI revolution will require millions of GPUs, and Nvidia will be selling many of them, generating hundreds of billions in revenue and profits.

After the arrival of a less costly A.I. model from China, U.S. markets and academics are wrestling with the ultimate economic value of the technology.