Chinese artificial intelligence lab DeepSeek may have completely altered the AI landscape. Having created a faster, more efficient, and cheaper open-source model for building large language models on inferior, underpowered chips, DeepSeek has changed the trajectory of the industry.
It promises a world where AI models are within reach of virtually any developer as the most advanced and complex -- and expensive -- AI chips are no longer necessary to create a superior product.
Obviously, Nvidia (NVDA) is potentially impacted most by this revelation and the market reacted by sending its stock careening lower. It may be a while before the AI juggernaut regains its footing. Investors are still moving slowly to see what the fallout will be.
While NVDA stock has regained some of its lost ground, it has yet to ascend back to its peak. It suggests the market wants to see if it will be a long-lasting hit to sales and profit margins.
While an investment in DeepSeek might seem warranted, it is privately held so no direct investment or gaining exposure through an exchange-traded fund is possible.
That means investors should look elsewhere for AI stocks to invest in. The two companies that follow are largely insulated from the tumult and could be among the best DeepSeek AI stocks to buy now.
Data centers are going to be key beneficiaries of the new AI environment because they use massive amounts of electricity from powering these advanced models. AI’s growth is expected to cause their total electricity consumption to hit over 1,000 terawatt-hours (TWh) in 2026, or "roughly equivalent to the electricity consumption of Japan."
Lowering costs will accelerate their expansion, which is why Super Micro Computer (SMCI) is an AI stock to buy now. It is a picks-and-shovels play on the data center boom.
Supermicro, as it is called, is an AI data center infrastructure stock, making the servers and full rack scale solutions they need. Based on the immediate needs of its customers, the company is able to quickly tailor its equipment to their precise specifications.
Because of its streamlined, almost assembly line nature of its production, Super Micro Computer can churn out its equipment, yet add in AI chips from leading providers. It counts as customers all of the top hyperscalers, including Amazon (AMZN), Apple (AAPL), Meta Platforms (META), and Microsoft (MSFT).
Even better, SMCI stock is trading at a significant discount. After becoming embroiled in a controversy following a report by noted short-seller Hindenburg Research over alleged accounting manipulation, the stock cratered.
Shares are down 72% from their 52-week high and have been cut in half over the past year. Yet an independent review of its accounting practices found no wrong-doing and Supermicro is climbing its way back. SMCI stock is up 11% from its low point.
At less than 10 times earnings estimates, Supermicro is an undervalued AI stock that can thrive regardless of the stripped-down LLMs that come to market in the future.
The second DeeSeek AI stock to buy is Palantir Technologies (PLTR). The AI-powered Big Data analytics shop has a dual-pronged strategy of breaking down the trillions of data points created by government agencies and private sector enterprises into usable, actionable information.
Business is booming. It added 43% more commercials customers to its rolls, leading to a 52% increase in U.S. revenue growth. Commercial revenue was up 64% while business on the government side was up 45%.
Palantir got its start by crunching numbers for government three-letter spy agencies, but quickly realized it was a limited, though growing market. Budgets were also mercurial and contracts could be lumpy.
The bigger and better opportunity was in the private sector. Big business generates as much if not more data that can quickly spiral out of control, leaving business overwhelmed. It is the primary reason Palantir Technologies turned profitable almost two years ago and hasn't looked back.
The AI-backed analytics stock posted adjusted earnings of $0.14 per share in its most recent quarter, well ahead of analyst expectations of $0.11 per share, and 75% above the $0.08 per share it turned in last year.
Buying PLTR stock now seems like chasing a rocket. Shares surged 25% after posting results and it is already up 47% in 2025. Over the past year, Palantir enjoyed a five-fold surge in its stock price.
Make no mistake, PLTR stock isn't cheap, but as the premier data analytics company that has been described as the "best pure play" AI stock by Wall Street analysts, Palantir Technologies should rise above the DeepSeek turmoil created in the AI market.
