I get the stupid basic excuse about big tech purchasing loads of silicon. That reasoning seems deeply flawed and idiotic to me. If Deepseek R1 democratizes training more for less, then that means customers with mid to small size data centers like universities now have access to train and research models in this space. Nvidia does not have a real competitor, so they get the sale. Their potential customer base just grew exponentially right? OpenAI should be devalued massively by this change, but I don’t see why anything impacts Nvidia negatively in this instance. Am I missing something or is the market this level of stupid? (I have no skin in this game)
I think Deepseek was a factor, but so too were the tariffs announced that week and the reviews coming out about their latest line of consumer GPUs, coupled with the fact that they were just so incredibly overvalued to begin with.
A lot of algorithms likely concluded “It can’t go any higher from here” and started selling off.