Monday, January 27th 2025

Tech Stocks Brace for a DeepSeek Haircut, NVIDIA Down 12% in Pre-market Trading

The DeepSeek open-source large language model from China has been the hottest topic in the AI industry over the weekend. The model promises a leap in performance over OpenAI and Meta, and can be accelerated by far less complex hardware. The AI enthusiast community has been able to get it to run on much less complex accelerators such as the M4 SoCs of Mac minis, and gaming GPUs. The model could cause companies to reassess their AI strategy completely, perhaps pulling them away from big cloud companies, toward local acceleration on cheaper hardware; and cloud companies themselves would want to reconsider their orders of AI GPUs in the short-to-medium term.

All this puts the supply chain of AI acceleration hardware in a bit of a spot. The NVIDIA stock is down 12 percent in pre-market trading as of this writing. Microsoft and Meta Platforms also faced a cut, shedding over 3% each. Alphabet lost 3% and Apple 1.5%. Microsoft, Meta and Apple are slated to post their quarterly earnings this week. Companies within NVIDIA's supply chain, such as ASML and TSMC, also saw drops, with ASML and ASM International losing 10-14% in European pre-trading.
Sources: LiveMint, The Kobeissi Letter
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102 Comments on Tech Stocks Brace for a DeepSeek Haircut, NVIDIA Down 12% in Pre-market Trading

#101
phanbuey
TumbleGeorgeThere is no way we can understand each other in this case. I give a fact about something that happened, you give me an assumption about what would happen if, according to the legend of how things are in China created by propaganda from the Western world. This is the main reason why many are surprised why in China there is such a huge technological progress and increase in the standard of living despite all the sanctions. Some explain it by stealing knowledge, do you know why, because the Western man, the capitalist, is a thief by nature and cannot explain it in any other way. And the explanation is very simple. Mass education and in general all education in China is significantly better and much more accessible than the expensive universities in the Western world, which are unattainable financially and which keep quality education for those who can pay, instead of giving it to everyone. This creates a much larger number of highly educated and capable people than education in the West.
Your fact about something that happened and the fact that they block and censor information about tianamen square are both true. There would have been no Deepseek if there was no ChatGPT, so not sure where your soap box of nonesense comes from. The majority of China is still extremely poor and underdeveloped - if they had a better government and system they would be much farther ahead. As an ex recipient of this 'excellent and free' education in the USSR - I totally disagree with your assessment.

One thing is for sure. Deeply ideological people will take one small win and parade it around like it's proof they have been superior the whole time, ignoring all other facts.
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#102
TumbleGeorge
phanbueyYour fact about something that happened and the fact that they block and censor information about tianamen square are both true. There would have been no Deepseek if there was no ChatGPT, so not sure where your soap box of nonesense comes from. The majority of China is still extremely poor and underdeveloped - if they had a better government and system they would be much farther ahead. As an ex recipient of this 'excellent and free' education in the USSR - I totally disagree with your assessment.

One thing is for sure. Deeply ideological people will take one small win and parade it around like it's proof they have been superior the whole time, ignoring all other facts.
Don't project your personal hardships in the USSR onto an entire other nation.
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