| Dear Prosperity Insider Nation, Over the weekend, a Chinese artificial intelligence lab introduced a new language model called DeepSeek R1.
And it might shake up the strong bull market in AI stocks…
On this news, stocks — especially chip stocks and anything related to AI — took a dive.
Markets often overreact to changes, and this downturn is an overreaction.
Some AI experts are skeptical about DeepSeek R1, even though it's gaining attention. Here's why: - Copied Work: There are concerns that DeepSeek R1 might have been trained using data from other AI models without permission, which could be a copyright issue.
- Bias and Censorship: The model seems to block or limit certain topics, especially those related to politics, which makes people question how "open" it really is.
- Performance Problems: While it's cheaper, some say it's not as smooth or accurate as other big AI systems, especially for more complex tasks.
These doubts mean people are being cautious about how useful or fair DeepSeek R1 really is.
Here's my take: This is typical Mr. Market behavior — shoot first, ask questions later.
This is normal market behavior — ups and downs.
Just last week, AI stocks surged after President Trump announced a game-changing initiative called "Stargate."  President Donald Trump, SoftBank CEO Masayoshi Son, Oracle's Larry Ellison and OpenAI's Sam Altman discuss Stargate in Washington, D.C. This new joint venture plans to invest a staggering $500 billion in building cutting-edge AI infrastructure in the United States.
This is a huge deal.
A $500 billion investment in AI infrastructure isn't just a boost for the industry — it's a clear signal that AI is the future.
The companies backing Stargate, including tech giants like Microsoft, NVIDIA and Oracle, are some of the most influential players in the industry — and they're making a bold commitment to the future of AI.
The real threat today is being spooked into selling your stocks based on the wiggles and jiggles on a chart.
Because the cornerstone of success in the stock market is this… - Seizing a Mega-Trend Opportunity: AI could contribute up to $15.7 trillion to the global economy in 2030. It's riding a tsunami-force tidal wave of growth.
- Buy Great Businesses at Great Prices: AI stocks have soared over the last year. But my research shows they are still undervalued and Mr. Market underestimated its future potential. That makes this dip a huge opportunity to buy.
- It's All About the Business: Not all AI companies are created equal. Over the long term, the stock follows the growth of the business, not the other way around.
Bottom line: Trust your research and stay disciplined, even when the market is skeptical.
Regards, 
Charles Mizrahi
Founder, Alpha Investor
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