9 Comments
User's avatar
Siarhei thinking's avatar

Absolutely agree. In the long run Nvidia seems to gain more profit out of this DeepSeek buzz

Expand full comment
André Figueira's avatar

Absolutely, people love to be armchair experts and spread fud though, I've had a field day debunking misinformation in this space, it's astonishing how many people air their bad takes and don't back down when proven wrong, it's a large driver of this.

Expand full comment
Skye Gill's avatar

Hard to find more compelling evidence of market behaviour being largely driven by a hype machine than this.

Expand full comment
André Figueira's avatar

100% not only that, just goes to show how many movements in the market are driven purely by emotion and greed, rather than facts!

Expand full comment
rastronomicals's avatar

Not a market person, too poor, but trying to figure out what people have been talking about, and this was my immediate reaction too. How can a cheaper large language model (right?) be BAD for people who make chips?

However, don't Trump's tariffs announced today now affect NVIDIA in the way people were fearing Deepseek would?

Expand full comment
André Figueira's avatar

Exactly—that’s the entire point. Open-source models mean more players beyond just OpenAI will need powerful GPUs, so NVIDIA’s growth will only accelerate. People hear “efficiency” and assume they can run these models on a laptop, which is totally off-base—high-performance chips are still indispensable.

Market sentiment can be knee-jerk: emotional traders saw the headlines, shorted NVIDIA, and made a quick buck. But fundamentals don’t lie, and I’d bet the Deepseek crowd knew this would happen. Once the dust settles, NVIDIA’s record-setting earnings and dominance in AI hardware will bring the share price back up.

Expand full comment
rastronomicals's avatar

Thank you for confirming. Any reaction to the tariffs?

Expand full comment
André Figueira's avatar

If you're referring to the tariffs Trump wants to impose, I fear they're going to lead to an intensifying trade war, and if implemented just mean higher prices for everyone. Not a good move.

Expand full comment
rastronomicals's avatar

I meant specifically in regard to NVidia--since 90%+ of their chips are made in Taiwan.

Expand full comment