The stock market has been a whirlwind of volatility in recent weeks, with companies in the AI and tech sectors experiencing significant fluctuations. The emergence of China’s AI startup, DeepSeek, sent shockwaves through global markets, as it prompted fears among investors that established players in the AI space would lose ground to new, low-cost competitors. In this global AI stock rout, two companies were in the eye of the storm, and that is Netweb Technologies and Anant Raj. However, after both of them issued clarifications to the market, their stocks rebounded sharply. Netweb Technologies jumped by as much as 10%, while Anant Raj jumped by 9%.
The narrative that emerged from these companies’ statements aimed to assure the market that the rise of DeepSeek was not a threat but rather an opportunity. In this blog, we will explore the market reaction, the clarifications issued by Netweb Technologies and Anant Raj, and what this development means for investors and the broader AI sector.
The Market’s Response to DeepSeek’s Emergence
It would be essential to look at the broader context in order to understand fully the significance of the recent spurt in the shares of Netweb Technologies and Anant Raj. DeepSeek, a low-cost AI startup based in China, has made waves in the market primarily due to its promise of affordable AI solutions. With AI technologies and applications rising rapidly, the emergence of DeepSeek posed a threat to established players in the sector.
DeepSeek’s entry into the market created concerns that the company’s low-cost solutions could erode the market share of more established players, which would, in turn, affect their business growth. This fear was exacerbated by the broader trend of AI-related stocks experiencing a pullback, causing many companies, including Netweb Technologies and Anant Raj, to face considerable selling pressure in the market.
But then again, both Netweb Technologies and Anant Raj put up statements a few days later, seeking to soothe investors’ jitters and show things in a different light altogether. Their messaging was unambiguous: while DeepSeek itself is no competition, it could be considered the right occasion to grow with some opportunities on its part like in data centres and high-end computing areas.
Netweb Technologies: Opportunity in Adversity
The company that came under the axe due to DeepSeek’s ascent was Netweb Technologies, one of the prominent companies dealing with high-end computing solutions. The stock of the company, which offers AI solutions, plummeted 50% at one point when it lost ground for eight consecutive days. However, once the company clarified its stance on DeepSeek’s emergence, the stock bounced up by 10%.
Netweb Technologies came out strong and clear in their response to the market’s reaction. In its statement, the company asserted that it does not see the rise of DeepSeek as a threat but rather as a growth opportunity. The company thinks that the faster the rise of DeepSeek, the faster the demand for AI-based solutions will rise, especially in the data centre space.
Several key points from the statement from Netweb Technologies:
- Market Expansion: DeepSeek’s very growth, according to Netweb Technologies, will, help augur a larger market for AI technologies. The thrust of inclusion in DeepSeek could thus help expand the market for AI solutions, thereby benefiting even new entrants like Netweb Technologies that possess a strong background in high-end computing.
- Alignment with Government and Enterprise Objectives: Netweb noted that platforms such as DeepSeek align with the objectives of local governments and enterprises, especially in India. Since India is spurring local AI and tech development, existing companies such as Netweb, which provides multi-GPU/APU platforms for the AI inference and training process, should gain from this. Netweb claimed that its AI solutions are aimed at both training and inference. Therefore, it’s poised to garner a greater portion of the market with an expanding scope of AI adoption.
- Strong Fundamentals: Netweb Technologies further went on to allay investor concerns that its fundamentals remained sound, be it on the technological and financial fronts. For the first nine months of FY2025, the company’s revenues have seen a growth of 60%. Its order book is at Rs 360.30 crore, and it has emerged as the lowest bidder (L1) for projects worth Rs 348 crore, indicating high demand for its products and services.
Anant Raj: Seizing the AI Opportunity with Data Centers
More significantly, Anant Raj, which is mainly a real estate company, also forayed into the data centre and AI-driven solutions with its subsidiary, Anant Raj Cloud. Anant Raj, like Netweb, witnessed a massive fall in its stock price due to worries over the DeepSeek hit the market. The shares of the company dropped by more than 42% in three successive sessions before bouncing back after the clarification from the company.
In its exchange filing, Anant Raj had tackled investor fears directly by referring to the positive effects that platforms such as DeepSeek were going to have on its business. It explained how AI solutions were bound to enhance demand for data centres, a view contrary to the fear of decentralization making infrastructure like that unnecessary. Anant Raj cleared the ambiguity about the growth of its data centre business through its increasing demands for AI-driven solutions and cloud infrastructure.
Anant Raj emphasized on the following:
The growth in AI platforms such as DeepSeek would increase demand for more data centres, noted Anant Raj. AI technologies require vast amounts of data processing and storage, an increase in demand for reliable data centre infrastructure. With this scenario in play and a focus from businesses and governments toward developing AI solutions, Anant Raj is poised to be a beneficiary as a player in the data centre space.
- Expansion into AI and Cloud: Anant Raj Cloud, was a strategic step for expansion into the AI and cloud space, diversifying revenue streams in the growing AI-driven infrastructure space. The investment in data centres coupled with real estate expertise puts it in a very unique position in the growing AI adoption trend.
- Long-term growth potential: Despite the short-term challenges, the long-term growth potential of the company remains intact. The entry of the company into the data centre business and AI-driven solutions goes in line with global trends regarding cloud computing and AI adoption. These sectors are expected to have robust growth in the coming years, and Anant Raj will be well-placed to benefit from this expansion.
- What this Means for the Industry: The clarifications from both Netweb Technologies and Anant Raj highlight an important point: the rise of AI platforms like DeepSeek presents both challenges and opportunities. While it may disrupt certain business models, it also accelerates the demand for infrastructure that supports AI adoption. This trend is particularly relevant for data centres, as AI technologies require vast amounts of computing power, storage, and connectivity.
In addition, the rapidly growing demand for AI points to the call for decentralized computing: AI solutions are deployed at the edge, closer to where the data is generated. This new computing architecture will mean significant new investments in infrastructure, which presents companies in the data centre and cloud computing space with a wide opportunity.
Conclusion: Embracing Change and Seizing Opportunities
The stock price rebound of Netweb Technologies and Anant Raj serves as a good reminder that markets are dynamic and constantly changing. While the gaining popularity of DeepSeek initially created concerns over how low-cost AI solutions would impact existing players, each company was relatively quick to reposition itself by clarifying how the emergence of new platforms like DeepSeek would only accelerate demand for AI infrastructure and services.
The AI adoption opportunity was recognized by Netweb Technologies as well as Anant Raj. They are taking a strong stand in the AI and data centre space. Companies with strong fundamentals, strategic investment in AI infrastructure, and long-term growth potential would be well-equipped to navigate through the changing AI landscape.
For investors, this means that the changes in this industry, whether they come from competition or innovation, pose both threats and opportunities. It is here, in the areas of companies responding to such change and positioning themselves for future growth, that investors will find immense opportunity in the AI and data centre sectors as they continue to expand rapidly.
0 Comments