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What you need to know today
$ 600 billion in Nvidia
Nvidia Shares have fallen almost 17%on Monday, The worst day of March 2020.about the worries caused by a Chinese deep intelligence model. Chip manufacturer Lost close to $ 600 billion in market capThe biggest fall for any company in one day in the history of the USA. Other shares associated with AI, such as Micron,, Holding weapons and Broadco in the USA, as well as Asml and Tokyo electron In global markets, it also dropped sharply.
Deepseek asks questions about AI investments
Chinese AI startup Deepseek on Monday posted his Model R1which rival Openai’s O1. His main claim of glory is that the model was built with chips less powerful than those US AI companies that use and could cost less than 10% of Target Llam, according to the evaluations of Jeffers analysts. It is a stretch of fears that they are huge investments in AI by US companies unjustified and a bubble waiting to climb.
Energy divides is exposed
Power companies that are most exposed to It fell into the data center of the Technology Sector on Monday, as Deepseek’s claims have brought investors to examine how much energy intelligence applications will actually consume. Visstra closed nearly 30% lower while The energy of the talen and Ge Vernova It collapsed more than 20%. All three shares gave up this year’s profit.
Technical shares beaten
Main US reference value fell on Monday On a wide withdrawal of semiconductors and stocks associated with AI, although the industrial average DOW Jones has been able to progress. The Stoxx 600 Paneurop Index reduced 0.07%, recovering from steep losses earlier. But stocks with connections AI, like Siemens Energy and Schneider electricHe finished the day sharply lower.
[PRO] Nvidia sold out ‘excessive response’: Tom Lee
Nvidia’s decline is a “excessive reaction” on the ladder near Pandemia’s sale in 2020, said Tom Lee, head of research on Fundstrat Global Advisors, for CNBC. Here’s why Lee For now, no mind is changed in Nvidia.
Bottom line
Nvidia route, triggered by the worries caused by deep long, that AI models do not really need expensive chips worth of billions of dollars, is deep and scary. There is no other way to put it in.
Before Monday, the chip manufacturer was the most valuable company that reports publicly. After a sale, which wiped off close to $ 600 billion in market capitalization of NVIDIA, the company fell to third place, behind, behind, Apple and Microsoft.
To put that tectonic shift in context, Nvidia is a fall on a market cap greater than the overall market value Netflix and twice the one of Wells Fargonoted CNBC -ov Adrian van Hauwermeiren.
And this is important for investors because Nvidia, in all likelihood, holds a place in his portfolio, given how much the stock market has relied on the chip manufacturers because of its gains in the last two years. Even if investors, for some reason, have not been exposed to Nvidia, its shares are among the top 15 stakes of 469 funds to be traded, they state Vettafiadded Van Hauwermeiren.
Nvidia aside, the other players of Aj-Adjacencent Pale Pale, which caused the technologically heavy Nasdaq composite to slide 3.07%. S&P 500 lost 1.46%. However, the industrial average of Dow Jones, which climbed to 0.65%, was somewhat protected by Monday Blootbath with profits in Apple, Johnson and Johnson and passengers.
“This is a good example of selling the first and asking questions later, and investors somehow felt that the assessments were slightly stretched for technology in general, and especially for the semiconduct,” said Stovall Sam, the main investment strategist in CFRA research.
“We will have volatility, especially when we are engaged in richly valued markets and exogenous events,” Stovall added.
Really, CBOE VIX index -What measures the power of the 30-day change of prices S&P and therefore seen as a fear meter on Wall Street Monday jumped by 20.5%, although he managed to fall with an increase of 45% earlier during the day.
Accordingly, there were still pockets on the market on which the shares rose, suggesting that “investors do not necessarily combine supplies but rotate in defense areas,” as Stovall said.
Some technological shares even rose despite the Deepseek threw it into the sector. Stocks Sales power,, Adobe and Networks fell alto He was spotted in appearance that AI cost could fall and expand their margins, according to John Belton, a portfolio manager at Gabelli Funds.
In other words, Deepseek does not prove that AI is a fantastic hole in which investors and companies have poured money. On the contrary, it suggests that AI is more affordable and more affordable than thoughts – if Deepseek’s claims about his low cost are shown true, investors must get used to playing AI playing.
– CNBC -ov Lisa Kailai Han, Fred Imbert, Pia Singh, Jesse Pound, Michelle Fox, Nicholas Wells, Adrian van Hauwermeiren, Scott Schnipper contributed to this report.
