Massive drop in USA AI stocks tonight?

I saw pre market price drop a lot, think it will open like this?

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50% drop at least.

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Well hope not. Trump is off to very awful start if that happens.

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I predict a market correction at some point.

Mark my words!

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Buzz grew over the weekend about DeepSeek’s latest AI model being cost-effective while running on less-advanced chips,

I stopped really paying attention there.

Why would this make sense? Even if they did manage to get something working with the less advanced chips, wouldn’t the more advanced chips do it better?

We don’t need advanced chips now? That’s the premise?

The DeepSeek product “is deeply problematic for the thesis that the significant capital expenditure and operating expenses that Silicon Valley has incurred is the most appropriate way to approach the AI trend,’ said Nirgunan Tiruchelvam, head of consumer and internet at Singapore-based Aletheia Capital. “It calls into question the massive resources that have been dedicated to AI.”

If this scare tactic makes chip makers and consumers think more clearly about particular AI applications in the real world, seems like a win win.

Buy the dip.

Btw, didn’t just do this with quantum computing? :laughing:

The premise, is we do not need as many advanced (expensive) chips when lower costs ones can do many functions that they thought expensive ones could only do. It’s not they can do better, it’s the cheaper ones can do it now, so fewer advanced (ie expensive ones) will be sold

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I’m not concerned with what they can right just now. Will they be developing on the spot cancer drugs right just now? No.

That’s what I’m looking for. Not emotional support bots.

As for fewer advanced kits being sold— I doubt big finance will be getting the knock offs.

They are not using knock offs, just using cheaper brands. it’s like in EU, we get company cars and if we drive a 瑪莎拉蒂 car, but end up buying a FORD car I would not call it a knock off, and it still gets the job done even though it’s less advanced. 瑪莎拉蒂 is most for get attention.

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The market will decide. The ethics of the market will guide. How much safety do we need in car sensors? TESLA levels or FORD levels?

I’m just not going to start running around because China announces there’s no need for all these super AI chips days after half a trillion bucks is thrown at more advanced ones in the US under President shit for brains. lol

Again, when China starts SOLVING China’s problems with these lesser chips, I’m get out of bed and put my slippers on, but atm, it’s too warm in bed.

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I see NVDA is getting hammered, but the Nasdaq doesn’t look too bad.

SOFI as well-- hmm, now didn’t they cosponsor that massive AI infrastructure thing?

Market manipulation on a grand scale? Maybe.

Buy the dip.

The reaction does seem more like that for a “threat” than some kind of existential crisis? Even this kind of move on NVDA is not exactly unusual.

It’s definitely a game changer if AI can be achieved with cheaper chips , still that only makes AI more ubiquitous as demand grows at the same time.

The hype about deepseek itself is slightly overdone though, it’s deeply embedded with Chinese censorship.

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They all have their own political lens, it seems.

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Yeah, and fwiw, they are look like tiktok coming from China. maybe it’ll be a big hit in the BRICS.

Now way anything AI data gathering related gets through the Trump wall. My gut says this kind of one upmanship is the new normal.

Also, i’m getting hit hardest in OKLO and GEV today, energy-- nuclear energy.

I just find the timing of this announcement too suspicious. We will and should build out our nuclear energy grid ASAP. Say whatever about the AI LLM and whatnot, the data centers are not going away, and data collection is obviously going to increase exponentially, with or without the “good” chips. China can’t tax and tariff that stuff to shut or slow it down, but they can do this

The fear would be the desire for fewer high end, high margin processors to get the same results, which potentially has negatively reinforcing pressure on pricing power. Part of what has made the likes of NVDA and TSM so profitable the past few years is not just the units they’ve been moving, but they’ve been able to sell at higher margins (NVDA’s margin growth has been insane).

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No, DeepSeek was using NVDA kit - just a lot fewer of them.

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Well, I’m seeing this “slowdown” to be more, do we need this stuff, not this argument, which I think is far more reasonable. They won’t be making AS MUCH money.

again…buy the dip. There’s no slowdown.

The price will go back up once everyone realises it didn’t cost DeepSeek $5 mill to build and the Chinese state poured billions into making it using sanctioned chips they’re not supposed to have.

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