Nvidia sheds almost $600 billion

[neurosis]

Nanci Pelosi is going to be pissed. 

How scary is this.  Deepseek  Trashes US Ai for a fraction of the cost and in a fraction of the time.

https://www.cnbc.com/2025/01/27/nvidia-sheds-almost-600-billion-in-market-cap-biggest-drop-ever.html

Nvidia lost close to $600 billion in market cap on Monday, the biggest drop for any company on a single day in U.S. history.

"The chipmaker's stock price plummeted 17% to close at $118.58. It was Nvidia's worst day on the market since March 16, 2020, which was early in the Covid pandemic. After Nvidia surpassed Apple
 last week to become the most valuable publicly traded company, the stock's drop Monday led a 3.1% slide in the tech-heavy Nasdaq.

The sell-off was sparked by concerns that Chinese artificial intelligence lab DeepSeek is presenting increased competition in the global AI battle. In late December, DeepSeek unveiled a free, open-source large language model that it said took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s. "

[mkd]

Some fake news..?. I heard it was 6 million to train, not to build, which makes a huge difference in calculating cambarative values of other projects.
 Even so, the Chinese doing great on lesser hardware is a chink in US AI armor.

[mkd]

Tech ETFs also took it in the shorts with XLK dropping >5%

Interestingly, outfits that will be able to actually monetize the technology of AI like Amazon and Google weren't effected.
 If you're holding NVIDIA directly... id say get out. Selling shovels to a now commoditized industry isn't where I'd want to be.

[Jeff]

Nvidia lost close to $600 billion in market cap on Monday

Probably also has something to do with their new 50 series cards are WAY overpriced for what you get.
The 5090 card msrp's at $2k when we all know you won't find one for less than $3k. And since they conveniently stopped production on the 4090 cards a while back to try and make the 5090 more appealing, it will be hard to justify a 25% performance gain over the 4090 for the price tag from a gamer perspective.

[YoDoug]

Could it just be a correction of Nvidia's real value. Their stock grew at unheard of rates over the last 4 years.

[neurosis]

Could it just be a correction of Nvidia's real value. Their stock grew at unheard of rates over the last 4 years.

If it is, the timing was very coincidental. 

I'm guessing that Paul Pelosi didn't see this coming.   

[YoDoug]

If it is, the timing was very coincidental. 

I'm guessing that Paul Pelosi didn't see this coming.   

Not coincidental at all. Often all it takes is another companies progress or an outside event to show how inflated a stock value was.

[neurosis]

Not coincidental at all. Often all it takes is another companies progress or an outside event to show how inflated a stock value was.

The only reason I say that, is that current Ai relies heavily on Nvidia chips. China's new Ai, not as much. If there are cheaper options out there, or the demand drops, I can see the value of Nvidia tanking. 

Over the past several months I've seen people say that Nvidia is overvalued and I've seen people say that it's not. I have no idea.


"Companies like DeepSeek have demonstrated that it is possible to create competitive AI models using fewer Nvidia chips and potentially alternative chips. For instance, DeepSeek's DeepSeek-V3 model reportedly used only about 2,000 Nvidia chips compared to the 16,000 used by major American companies."

[ghuns]

...I'm guessing that Paul Pelosi didn't see this coming.   

I wouldn't bet on that.

[YoDoug]

The only reason I say that, is that current Ai relies heavily on Nvidia chips. China's new Ai, not as much. If there are cheaper options out there, or the demand drops, I can see the value of Nvidia tanking. 

Over the past several months I've seen people say that Nvidia is overvalued and I've seen people say that it's not. I have no idea.


"Companies like DeepSeek have demonstrated that it is possible to create competitive AI models using fewer Nvidia chips and potentially alternative chips. For instance, DeepSeek's DeepSeek-V3 model reportedly used only about 2,000 Nvidia chips compared to the 16,000 used by major American companies."

When you base your value on potential future earnings, the value is speculative. The old saying "don't count your chickens before they hatch" seems long forgotten.

[neurosis]

DeepSeek's Popular AI App Is Explicitly Sending US Data to China

LOL.  And they were worried about TikTok.   


https://www.wired.com/story/deepseek-ai-china-privacy-data/

[mkd]

Interesting parallel of a Chinese release and a Trump presidency.

[SuperHoneyBadger]

DeepSeek's Popular AI App Is Explicitly Sending US Data to China

Everyone wants to be popular, nobody cares about the value of information and privacy. It's just not a virtue anymore, and I always here the "what do I have to hide?" argument. Yet the same people will freak out when Netflix knows they logged in somewhere outside their house and THEN start to wonder why their rights are being infringed.

[Rstewart]

I wouldn't bet on that.

He didn't see that hammer coming either

[YoDoug]

Everyone wants to be popular, nobody cares about the value of information and privacy. It's just not a virtue anymore, and I always here the "what do I have to hide?" argument. Yet the same people will freak out when Netflix knows they logged in somewhere outside their house and THEN start to wonder why their rights are being infringed.

I have been staying at an Airbnb for the last 9 days. The smart TV has streaming services that I don't subscribe to that were left logged into someone else's account. It's been like a free week trial for me on different services. Although when I see someone elses history and continue watching feed it feels like I am invading their privacy.