Nasdaq Plunge: Analyzing the Tech Stock Decline Led by NVIDIA
1. Key Background of the Nasdaq Decline
– Nasdaq down 3.3%
While the Dow Jones, which includes traditional US stocks, rose, the tech-heavy Nasdaq plunged due to a collapse in large tech stocks.
– NVIDIA's Massive Plunge: -15.84%
NVIDIA's market cap evaporated by 860 trillion KRW in a single day: a record high. This is a larger amount than the market cap of Oracle, Mastercard, and Netflix combined.
2. Main Reasons for the Decline
– Pressure from China's DeepSick
DeepSick's release of excellent AI models (V3 and R1) at low costs brought panic to the US tech stock market.
- Questioning the AI strategy of Big Tech: Concerns about over-investment.
- Market reaction that the need for high-performance semiconductors is decreasing.
– Simultaneous Plunge in Semiconductor and Infrastructure-related Stocks
Semiconductor-related stocks (AMD, Broadcom, Micron, etc.) and companies related to data center cooling and energy were also severely impacted.
- The possibility of reduced data center and related AI investments is a major concern.
3. Reactions from Wall Street and Industry Experts
Positive Views
- Microsoft CEO Satya Nadella
Mentioned the Jevons Paradox: Predicted that higher efficiency leads to more usage, emphasizing the possibility of increased AI demand. - Bernstein, BOA
Evaluated that DeepSick is a sign of innovative technological expansion and will rather accelerate AI development.
Negative Views
- Mizuho Securities
Pointed out that market confusion will take time and that AI-related stock prices are currently overvalued. - Elon Musk and other Experts
Analyzed that DeepSick is based on existing high-performance GPUs, so there is some exaggeration in the actual cost rumors.
4. Market Outlook and Investment Points
– Short-Term
Concerns about reduced investment in some high-performance semiconductors and infrastructure due to DeepSick's efficiency technology.
- Possibility of further declines in semiconductor stocks.
– Mid- to Long-Term
The technological leadership competition between the US and China is seen as a 'Sputnik Moment,' leading to accelerated AI-related investments. There are market opinions that view the expansion of AI industry investment positively.
– Potential for Changes in Technology and Devices
The emergence of a personalized AI environment centered around devices with DeepSick's "AI that can be run on high-end personal computers," creating a favorable environment for smartphone-centric companies like Apple.
5. Reasons for Survival of Apple and Meta
Apple: Potential for low-cost AI investment and riding the smartphone replacement cycle.
Meta: Expectation of utilizing unique assets as a data-driven company.
< Summary >
The Nasdaq plunged, led by tech stocks, and NVIDIA's market capitalization evaporated by 860 trillion KRW in a single day, breaking the all-time record. This was mainly due to market pressure from China's DeepSick low-cost AI models, and semiconductor and data center-related stocks were also hit.
While Wall Street showed some concerns, it also presented positive views that DeepSick's efficiency technology will accelerate AI investment and industrial development. Along with this, the possibility of changes related to AI devices has been presented, highlighting the possibility that smartphone-centric companies such as Apple will benefit.
[More…]
- [Short Case for NVIDIA Stock] https://Next-Korea.com?s=NVIDIA
- [DeepSick FAQ Ben Thompson Summary] https://Next-Korea.com?s=DeepSick
*YouTube Source: [내일은 투자왕 – 김단테]
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