Billionaire investor Steve Cohen, the founder of Point72 Asset Management, recently shared his optimistic views on the long-term prospects of artificial intelligence (AI) at the iConnections Global Alts conference in Miami. Cohen sees the recent advancements by the Chinese AI startup DeepSeek as a bullish development for the AI industry.
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DeepSeek recently asserted that its AI model not only competes with those of U.S. tech giants but may also surpass them in performance, all while being more cost-effective. This news triggered a sharp selloff in tech stocks, particularly impacting Nvidia (NVDA), which saw about a 17% drop in its share price on Monday.
Cohen Says DeepSeek Is a Positive Catalyst
Cohen views DeepSeek as a positive catalyst for the AI sector. He argued that DeepSeek signifies a major step towards the rise of artificial superintelligence, a hypothetical software-based AI system with an intellect beyond humans. He emphasized that this progress is coming quickly, referring to AI models that might potentially be smarter than human brains.
Further, he acknowledged the potential for volatility in the AI sector, primarily due to misinformation. Cohen said, “There’ll be advances, and then it goes quiet. And there’re going to be moments when people are going to doubt it like yesterday. There’s a lot of people who own these stocks who perhaps don’t know what they own and why they own it, other than they know they should own some AI securities. And so you get a lot of misinformation.”
Cohen’s AI Fund Achieves 14% Returns in Three Months
Cohen’s optimistic views are further supported by the success of his recently launched AI-focused fund, Turion, which has already achieved a 14% return in just three months and grown to nearly $1.5 billion in assets.
This success reflects both the growing investor interest in AI investments and Point72’s strategy to leverage the sector’s rapid expansion.
Which Is the Best AI Stock to Buy?
For investors interested in AI stocks, we have rounded up the best stocks that analysts are bullish about using the TipRanks Stocks Comparison tool.
