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Netweb rises 10% on DeepSeek's impact assessment; had fallen 48% in 3 weeks

The company called the emergence of DeepSeek -- a new artificial intelligence (AI) large language model (LLM) platform, a significant opportunity for its business growth

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SI Reporter Mumbai

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Shares of Netweb Technologies India (Netweb) locked in upper circuit of 10 per cent at Rs 1,605.35 on the BSE in Wednesday’s intra-day trade after the company said the emergence of DeepSeek - a new artificial intelligence (AI) large language model (LLM) platform is a significant opportunity for its business growth.  Till 1:00 PM, a combined 783,000 equity shares changed hands and there were pending buy orders for around 110,000 shares on the NSE and BSE.  Netweb, in its business update on certain global developments in the space of AI and its impact on the company’s business, said "As a leader in high-end computing, with AI as an important vertical, Netweb views the emergence of DeepSeek as a significant opportunity for its business growth".
 
 
Netweb is India’s leading Indian origin, owned and controlled OEM in the space of High-End Computing Solutions (HCS). It offers a full stack of products and solutions to various end user industries such as IT, ITeS, BFSI, National Data Centers and government entities such as Defence, Education and R&D institutions.
 
In the past three weeks, the stock price of Netweb has plunged 48 per cent as China’s answer – DeepSeek – to AI tools and models such as Chat GPT triggered a sell-off across global stocks. It had more than halved, or tanked 52 per cent, from its record high level of Rs 3,060 touched on December 17, 2024.
 
Besides tech stocks, the DeepSeek innovation, analysts said, has also triggered fears that demand for energy-intensive AI infrastructure could falter, sending ripples through the markets.
 
Meanwhile, Netweb said DeepSeek paves the way for inclusive AI adoption, expanding the market further. By lowering the cost barriers associated with advanced technology, it enables a wider range of customers—previously hesitant due to high adoption costs—to access and utilise appropriate computing resources. This empowers them to leverage AI effectively for addressing their business challenges, thereby driving greater demand for the company’s solutions.
 
The adoption of platforms like DeepSeek aligns with the interests of local governments and enterprises. This will accelerate the development of similar platforms within India. The Indian government’s current AI policies explicitly emphasise "developing indigenous large language models and domain-specific AI models" as a key pillar, the company said in an exchange filing.
 
This focus is aimed at harnessing global technological disruptions, which will further propel India’s AI-driven efforts and investments. In fact, such disruptions will only hasten India’s commitment to advancing its AI initiatives and allocating resources toward this transformative technology, it added.
 
The company’s business model is underpinned by three key growth pillars, including high performance computing (Supercomputing / HPC) systems (representing over 30 per cent of revenue), private cloud and HCI (over 30 per cent of revenue), along with AI systems (more than 14 per cent). The growth driving technologies within these product lines provide ample headroom for continued expansion and a clear roadmap for the coming years, the management said.
 

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First Published: Jan 29 2025 | 1:25 PM IST

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