The "AI arms race" is heating up... Chaikin Analytics founder Marc Chaikin just talked about this idea yesterday.

China Fires Another Shot in the 'AI Arms Race' By Vic Lederman, editorial director, Chaikin Analytics The "AI arms race" is heating up... Chaikin Analytics founder Marc Chaikin just talked about this idea yesterday. In short, last week, Chinese startup DeepSeek unveiled its artificial-intelligence ("AI") model called "R1." And since then, experts have trumpeted it as a big breakthrough in the space...  DeepSeek's AI model reportedly works as well as the newest version of OpenAI's ChatGPT. And the company says it trained the model in only two months and at a much lower cost. Even if that's an exaggeration, it's still a huge deal... It means that AI-model training is getting more efficient. And right now, China is ahead. That brings us to the latest news out of China... Put simply, the country just fired another big shot in the AI arms race. One of China's biggest businesses released a new version of its own AI model yesterday. And the company claims that it surpasses both DeepSeek's R1 and OpenAI's ChatGPT. As I'll explain today, U.S. investors like us should be paying close attention... Recommended Links: Make This ONE Move by February 4 Whether you're in stocks or cryptos... it has been a tough week for most investors. But there is ONE money move you should consider by February 4 – a simple step that could have a massive impact on your wealth in 2025... and help you sleep soundly at night. See why right here. America's Next Currency Crisis Just Started in Texas The people of Texas are fed up. Like a lot of us, they're sick of being overtaxed and overregulated. And they're tired of the U.S. dollar being devalued and inflated by politicians in D.C. – so, the Lone Star state has taken matters into its own hands... and has begun embracing a new currency. It's not gold or silver, and it has nothing to do with Texas' huge oil reserves. But this new currency is already creating massive wealth for anyone who understands it. Here's exactly what's happening. The company I'm talking about is Alibaba (BABA). If you're not familiar with Alibaba, it's one of the most powerful companies in China. You can think of it like Amazon (AMZN)... The company is an e-commerce giant. And like Amazon, it also provides cloud services and other technology solutions. In the U.S., Alibaba's shares trade on the New York Stock Exchange. The company's market cap is about $230 billion today. That puts it in the top 50 most valuable businesses globally. I want to make a couple points about Alibaba's big announcement... First, the company's new AI model is called "Qwen 2.5." The "2.5" in the name means that Alibaba has released previous versions of its AI model. And like OpenAI and DeepSeek, it's constantly working to make the technology better. My second point is about the timing... Alibaba unveiled its latest AI model on the first day of the Lunar New Year. That's like a company in the U.S. releasing a new product on Christmas Day. In China, most of the country is off work right now. So it's an unusual time for big news. In the end, it's clear... U.S. companies aren't the only ones feeling the pressure from DeepSeek. Alibaba's announcement came on a holiday. That tells us Chinese businesses are feeling the heat, too. The competition in the AI space is intense right now. This arms race is only beginning. Here's where the Power Gauge enters the story... You see, our one-of-a-kind system turned "bullish" on Alibaba last Friday. This change happened just days before the company's big announcement. Take a look... Now, I'm not saying that the Power Gauge can predict the future. Rather, as regular readers know, the system points us toward "what" to look at. And the "why" often comes out later. In this case, Alibaba's big announcement fits the bill. That doesn't mean you should rush out and buy the company's stock today. It's more about the big picture. These back-to-back announcements from Chinese businesses are telling... We're in the middle of the AI arms race. Some of the world's most powerful companies are trying to one-up each other. They're making advancements with the technology almost every day. In the end, AI will become more accessible and powerful than ever before. This megatrend will make major waves in the stock market in the months and years ahead. Importantly, the Power Gauge will help us spot the winners and avoid the losers. If you've been skeptical about AI so far... now is the time to start taking it seriously. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -0.27% 10 13 7 S&P 500 -0.45% 97 243 158 Nasdaq -0.19% 28 44 28 Small Caps -0.23% 413 1034 457 Bonds -0.2% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bearish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Communication +2.64% Health Care +2.45% Staples +2.24% Financial +1.73% Discretionary +0.4% Materials -0.16% Real Estate -0.32% Industrials -1.75% Utilities -2.02% Energy -2.27% Information Technology -4.0% *  *  *  * Industry Focus Transportation Services 9 25 11 Over the past 6 months, the Transportation subsector (XTN) has outperformed the S&P 500 by +3.16%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #10 of 21 subsectors and has moved up 2 slots over the past week. Indicative Stocks GXO GXO Logistics, Inc. FDX FedEx Corporation FIP FTAI Infrastructure *  *  *  * Top Movers Gainers FFIV +11.4% SBUX +8.14% TMUS +6.34% HSIC +4.95% CEG +4.7% Losers PKG -9.77% DHR -9.73% MRNA -9.39% LII -8.79% BXP -5.93% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close CAH, LUV DECK, RMD, V, WY VLO, AOS, UPS, TT, TSCO, TMO, ROP, PHM, PH, NOC, MO, MA, LHX, IP, DOV, CI, CAT BKR, CCI, GEN, HIG, KLAC AVY, CMCSA, DGX, DOW, SHW, MMC AAPL, AJG, EMN, INTC, NUE, PPG No earnings reporting today. Earnings Surprises LII Lennox International Inc. Q4 $5.60 Beat by $1.36 HES Hess Corporation Q4 $1.76 Beat by $0.29 META Meta Platforms, Inc. Q4 $8.02 Beat by $1.28 PGR The Progressive Corporation Q4 $4.08 Beat by $0.52 RJF Raymond James Financial, Inc. Q1 $2.93 Beat by $0.24 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2025 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.