It’s not just tech stocks that have been impacted by the popularity of the new DeepSeek AI model, energy stocks are tumbling because the new tool requires a fraction of the computing power of competitors.
But Nigel Green, CEO of deVere Group says this isn’t a sign of decline, but rather of transformation.
He comments: “DeepSeek’s breakthrough signals a shift toward efficiency in AI, which will redefine both energy and AI markets. The opportunities for investors willing to act now are enormous.
DeepSeek’s model combines cutting-edge algorithms to slash the energy demands of AI training and deployment.
“This challenges the assumption that AI’s growth is tied to ever-increasing energy consumption. While the market is reacting to short-term uncertainty, efficiency-driven AI models will expand adoption into new markets and industries.
“This means more widespread use, deeper integration, and ultimately, sustained demand for energy solutions.”
Renewable energy providers, in particular, are poised to gain as AI infrastructure evolves to prioritise sustainability and ROI. While the immediate reaction in energy stocks reflects uncertainty, the long-term outlook remains robust.
Companies driving innovation at the intersection of AI and clean energy will emerge as the leaders of this new era, Green says.
“I believe that markets are missing the bigger picture. Efficiency doesn’t shrink demand – it diversifies it.
“DeepSeek’s breakthrough will accelerate AI adoption and create massive opportunities for investors who focus on the sectors driving this transformation.”
AI infrastructure is also evolving to support this shift.
Scalable cloud solutions, innovative chip designs, and sustainable energy grids will remain critical to the sector’s long-term growth. These disruptions don’t mark the end of AI infrastructure demand; they signal its evolution toward a more efficient, accessible, and expansive future.
Green concludes: “DeepSeek’s innovation is not just a technological milestone – it’s a wake-up call. Disruption creates opportunities for those who can see beyond the noise.
“Energy and AI markets are entering a new phase, and investors who align with these changes now will be positioned to benefit from the next wave of growth.”