11:40 AM EST, 01/29/2025 (MT Newswires) -- The Chinese AI company DeepSeek is part of the evolving generative artificial intelligence sector rather than a "big course correction," BofA Securities said in a Wednesday note.

"DeepSeek built upon and improved the innovations that Meta Llama models have pioneered," BofA said. While DeepSeek's contributions are "noteworthy," the investment firm noted that the company did not invent any new technologies.

Four to five of the key software technologies that DeepSeek used are open-source and are readily available for adoption, BofA added.

"We believe the emergence of China's DeepSeek model could spur even higher AI spend from US hyperscalers," BofA said, highlighting the continued importance of hardware and semiconductor companies in advancing AI models.

BofA said it continues to expect the compute total addressable market to double towards around $500 billion through 2028/2029.

BofA Securities reiterated its buy ratings on Nvidia ( NVDA ) , Broadcom ( AVGO ) , and Marvell Technology ( MRVL ) .

Price: 122.57, Change: -6.43, Percent Change: -4.98