Justin Sullivan | Getty Images
This is a report from today’s CNBC Daily Open, our newsletters about international markets. CNBC Daily Open brings investors to accelerate everything they need to know, no matter where they are. As you see? You can subscribe here.
What you need to know today
Deepseek asks questions about AI investments
Chinese Startup Artificial Intelligence Deepseek on Monday posted its Model R1which suburbs Openai’s O1 capabilities. Model could cost less than 10% of The meta is Lama, according to evaluates Jeffers. It is a stretch of fears that they are huge investments in AI by US companies unjustified. US President Donald Trump said on Monday that Deepseek “should be an awakening call“For US technological companies.
Nvidia is $ 600 billion
Nvidia Shares have fallen almost 17%on Monday, The worst day of March 2020.As for the prices Deepseek raised. Chip manufacturer Lost close to $ 600 billion in market capThe biggest fall for any company in one day in the history of the USA. Still, Nvidia described Deepseek as “Great Progress AI”, which suggests that development is a grace for the company, not the weight of the chip sale.
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. Japanese Nikkei 225 fell about 1.5% as the stock of chips in the country, affected by Deepseek’s release, expanded its fall the second day in a row. Taiwan, South Korean and Chinese markets are Closed for holidays.
[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.
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.
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.
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 made progress despite the fact that Deepseek threw Pall over 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.
Echoes that feelings, Bofa Analyst of Securities, the Justin Post’s Posting Analyst wrote on Monday in a note that if the training of AI really can be carried out in a fraction of what they cost today, there would be “a short -term advertising fee, travel and other consumer applications that use Cloud Cloud AI services, although would be long-term revenues and costs associated with AI and costs are probably lower. “
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, and its advantages can be used by pockets that are not as deep as Big Tech. If Deepseek’s claims about his low costs show true, investors must be used not only to permeate multiple sectors, but also a different way of playing AI.
– CNBC -ov Lisa Kailai Han, Fred Imbert, Pia Singh, Jesse Pound, Michelle Fox, Nicholas Wells, Adrian van Hauwermeiren, Scott Schnipper contributed to this report.
