Trump 2.0: Impact on tech investments

The tech sector, which was once the darling of Wall Street, is facing new challenges as China's DeepSeek emerges as a major player in the artificial intelligence (AI) space. Chetan Ramlall, Head of Quantitative Research at 1nvest, joined CNBC Africa to discuss the impact of DeepSeek on the investment case for tech, the implications of the Trump presidency, and the potential regulatory interventions that may follow. Donald Trump's presidency saw a surge in tech stock prices, with companies like Nvidia and Alphabet reaping major benefits. However, the landscape has shifted with the emergence of DeepSeek from China, disrupting the status quo in AI innovation. Ramlall highlighted the surprise factor of DeepSeek's entry into the market and its potential to challenge established tech giants in the US. DeepSeek's ability to deliver impressive results with minimal resources has raised questions about the valuation of incumbent tech firms. With investors questioning the high costs associated with current AI models and the simplicity of DeepSeek's technology, uncertainty looms over the future of tech stocks. Ramlall emphasized the need to closely monitor the developments in the sector in the coming months. The White House is also closely watching the impact of DeepSeek and considering potential regulatory measures to protect American interests in the tech industry. Trump's 'America first' stance faces a challenge with the rise of DeepSeek, posing a risk to the US's leadership in AI. Ramlall discussed the $500 billion Stargate project and how DeepSeek's emergence threatens the US's technological dominance. Despite the uncertainties created by DeepSeek and the Trump presidency, Ramlall advised investors to stay focused on the long-term potential of technology in their portfolios. The transformative impact of AI on society and the consistent growth of tech stocks make them a crucial component of investment strategies, despite the current challenges. Looking ahead, Ramlall highlighted the opportunity for investors to capitalize on the lower valuations of tech giants as new entrants like DeepSeek disrupt the market. While acknowledging the risks and uncertainties, he emphasized the importance of remaining invested in technology for long-term growth and returns. As the tech sector navigates through these turbulent times, the conversation around the impact of DeepSeek, regulatory interventions, and the evolving role of tech giants under the Trump presidency will continue to shape the investment landscape in the years to come.