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What you need to know today
Deepseek raises questions about artificial intelligence investments
Deepseek released Chinese artificial intelligence on Monday R1 thinking model, which competes with Openai’s O1 capabilities. The cost of this model can be less than 10 % of Llama Meta, according to Jefferies estimates. These concerns that huge investments in artificial intelligence by American companies are unjustified. US President Donald Trump said on Monday that Dibsic “must be an invitation to wake up” for American technology companies.
NVIDIA 600 billion dollars
Nafidia The stocks decreased nearly 17 % on Monday, their worst day since March 2020, regarding the price concerns raised by Depsic. The chip maker lost approximately $ 600 billion in the market, which is the largest decrease in any company in one day in the history of the United States. However, NVIDIA Deepseek described it as “excellent advancement of Amnesty International”, indicating that development is a blessing for the company rather than its weight in chip sales.
Energy is involved in the exit
The most vulnerable energy companies in the technology sector fell on Monday, as Depsik’s demands for investors resulted in the question of the amount of artificial intelligence applications that will already be consumed. Vistur Close nearly 30 % less while Speech energy and Ji Fernova More than 20 % fell. All three shares abandoned this year’s gains.
Technology shares were beaten
The main American standards fell on Monday to a widespread decline by the semiconductors and shares related to the prosecution, although the industrial average of Jones managed to advance. Japan Nikki 225 About 1.5 % decreased as the country’s chips, which was affected by the released release of Dembassic, extended their decreases for a second consecutive day. Taiwan, South Korea and Chinese markets are closed for holidays.
(Pro) Nvidia Selling “Reaction”: Tom Lee
Tom Lee, head of research at Fundstrat Global Advisors, told CNBC that NVIDIA’s stagnation is a “exaggerated reaction” close to the sale of 2020. Here is why Lee does not change his opinion on NVIDIA at the present time.
The bottom line
The defeat of NVIDIA, caused by the concerns caused by Dibsic that artificial intelligence models do not actually need billions of dollars in expensive chips, deep and frightening.
Before Monday, Chipmaker was the most valuable company for the public. After the sale, which spent nearly $ 600 billion in the market value in NVIDIA, the company decreased to third place, behind it apple and Microsoft.
To put this tectonic shift in the context, the decline in NVIDIA in the maximum market is greater than the entire market value Netflix And double that Wales VargoNotice Adrian Van Hauweiren from CNBC.
Nafidia aside, other AIAAA-Macent plays decreased sharply, causing a 3.07 % NASDAQ nasdaq boat. S & P 500 1.46 % lose. However, the Dow Jones industrial average, which rose 0.65 %, was somewhat protected from the bloodbath on Monday with the gains in Apple, Johnson & Johnson and Travelers.
“It is a good example of selling first and asking questions later, and investors feel that the assessments are somewhat extended to technology in general and semiconductors in particular,” said Sam Stofal, the chief investment strategy in CFRA Research.
However, there are still pockets in the market where the shares have risen, indicating that “investors do not necessarily save stocks, but they are in defensive areas,” said Stoval.
Some technology shares have even advanced despite Pall Pall on this sector by Deepseek. shares Salesforceand Adobe and Palo Alto networks It has increased on the possibility that the costs of artificial intelligence may decrease and expand its margins, according to John Bilton, the wallet manager at Gabelli Funds.
Eching this feeling, Bofa Justin Post, Securities Analyst, wrote in a memo on Monday that if it is possible to do the training of Amnesty International on a small part of its cost today, then there will be “the benefit of costs in the near term for advertising and travel and other consumer applications companies that use the cloud intelligence services Artificially, while the long -term revenue and costs are likely to be less. “
In other words, Deepseek does not prove that artificial intelligence is a fictional hole in which investors and companies flow on money.
On the contrary, it indicates that artificial intelligence can be accessed at more affordable prices than thought, and its benefits can be harnessed by companies that have pockets that are not deep like Big Tech. If Deepseek claims about their low costs are correct, investors must use not only to treat artificial intelligence who permeate more sectors, but also a different way to play artificial intelligence.
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