"The recent emergence of DeepSeek ... suggests faster AI development and adoption in China than we previously anticipated," economists at the Wall Street bank said.
The enthusiasm around DeepSeek is also being reflected in the sharp rally in China stocks, with the MSCI China index soaring over 21% from its January low, according to LSEG data.
The startup's rise is triggering a reassessment of China's "investability" after an extended period of limited attention, Morgan Stanley said in a note this week.