DeepSeek’s AI Assistant app has held the top spot in Apple’s App Store (AAPL) for a week, with over 16 million downloads in its first 18 days of availability. Interestingly, this smashed the download rate of OpenAI’s ChatGPT app, which had 9 million downloads in its first 18 days. The app’s popularity also led to a number-one ranking in Google’s app store.
DeepSeek’s large language model reportedly rivals that of Microsoft-backed OpenAI (MSFT) but at a significantly lower development cost. The Chinese startup’s sudden rise to fame has caused a stir in the U.S. tech industry that led to a shake-up in stock prices last week.
However, DeepSeek’s success has also raised security concerns due to the fact that it was developed in China. In fact, Taiwan has banned government agencies from using the app due to security risks. Other countries, including Italy, South Korea, France, and Ireland, are also investigating DeepSeek’s handling of personal data. As a result, the app’s popularity may end up being short-lived if governments continue to crack down on its use.
Is MSFT Stock a Buy?
Although you cannot directly invest inDeepSeek or OpenAI, you can buy shares of Microsoft, which has a 49% stake in OpenAI. And according to analysts, Microsoft stock has a Strong Buy consensus rating among 32 Wall Street analysts. That rating is based on 29 Buys and three Holds assigned in the last three months. After a 3% rally in its share price over the past 12 months, the average MSFT price target of $508.48 implies 22.9% upside potential.
