Growth opportunities in the AI sector: two stocks to focus on according to Stifel

The race for AI dominance has taken an unexpected turn. Chinese startup DeepSeek has unveiled a new AI model that is not only affordable, but also runs efficiently on less powerful chips. The development sparked concern in the US stock market and triggered a plunge in stocks as speculation began to spread that China could overtake the United States in AI.

Despite this short-term volatility, new opportunities are emerging, with Stifel, a reputable investment bank, highlighting the AI sector as an area with high growth potential. In a recent report, Tore Svanberg, an analyst at Stifel, highlighted the long-term opportunities that the AI sector offers, particularly in software and data centres.

Monolithic Power Systems $MPWR: Key player in power and chips

One of the companies that Stifel highlights is Monolithic Power Systems (MPWR). This company is known for its specialization in semiconductor-based power electronic systems. Its products, which include power modules, motors, sensors, and…