09:25 AM EST, 01/27/2025 (MT Newswires) -- The tech selloff triggered by the launch of an artificial intelligence assistant developed by Chinese startup DeepSeek provides a buying opportunity and is "not the time to panic," Wedbush Securities said in a note Monday.

DeepSeek launched last week an AI model said to have been developed using reduced capability chips from Nvidia ( NVDA ) . The application, which rivals Microsoft ( MSFT )-backed (MSFT) OpenAI's ChatGPT and Meta's (META) Llama 3.1, climbed to #1 on Apple's ( AAPL ) App Store over the weekend, Wedbush said.

"While the model is impressive and it will have a ripple impact, the reality is that [Magnificent] 7 and US tech is focused on the AGI endgame with all the infrastructure and ecosystem that China and especially DeepSeek cannot come close to in our view," Wedbush analysts, including Daniel Ives, said in the note.

Wedbush said the DeepSeek model "is not launching 100 times the capacity/ algorithms that is needed to even consider this a competitive threat."

"The bears... will miss the next two years constantly waiting for the black swan event to end the AI Revolution trade... and today is no different," the analysts said. "These are just the opportunities to own the Nvidia ( NVDA ), Microsoft ( MSFT ), Alphabet (GOOG), Palantir ( PLTR ) , Salesforce ( CRM ) , Amazon ( AMZN ) and broader tech ecosystem that is under heavy pressure today."