DeepSeek Disrupts Wall Street: A Game-Changing AI Model

DeepSeek Disrupts Wall Street: A Game-Changing AI Model 💥

Greetings, everyone! A groundbreaking event has occurred in the tech world that has left Wall Street in shock. The rising star of domestic AI, DeepSeek, has unveiled a “nuclear-level” open-source model, and the implications are staggering!

Impact #1: A Power Struggle in Computing 🚀

Let’s summarize this situation succinctly: the domestic alternative has gone wild, leaving big names scrambling. NVIDIA (NVDA) experienced a significant stock drop of 3% in a single day. But that’s just the beginning!

• NVIDIA (NVDA): With DeepSeek training a GPT-4 level model using just $2,000 worth of H800, this is a mere 5% of the cost compared to OpenAI. Shocking, right?
• Morgan Stanley: Their recent report suggests that the demand for inference chips may plummet by 30% more than expected, leading to a price target reduction from $1200 to $950!
• AMD: Amidst this chaos, AMD has officially announced collaborations, further stirring the pot in this American-style commercial warfare!

Impact #2: Nasdaq Takes a Hit! 📉

The Nasdaq futures suffered a massive drop of 1.5%. Interestingly, META has seen a downturn while simultaneously announcing a whopping $65 billion investment in AI. It’s as if a gambler, after losing heavily, decides to go all-in — a dangerous cycle for the big corporations!

Final Thoughts 📝

Now, what should investors consider moving forward?

1. Avoid computing stocks in the short term: Wait for NVIDIA’s earnings report on February 22 to see what new narrative they can spin.
2. Be wary of policy backlash: The U.S. chip bans may inadvertently encourage the rise of domestic alternatives from China, reminiscent of inadvertently shooting oneself in the foot.
3. Looking to buy the dip? Check these three indicators:
   • Is the Fear Index (VIX) above 30?
   • Can NVIDIA maintain the critical support level at $130?
   • Has DeepSeek’s model passed the Turing Test?

As we navigate through these turbulent times in the stock market, staying informed and cautious will be essential. Will the DeepSeek model pass the tests of tomorrow? Only time will tell! Stay tuned for more updates on this evolving story. 💡