Is it DeepSeek or $USDJPY?
… a reminder that Tech’s relative performance peaked all the way back in July when Yen first strengthened. USDJPY < 155 today is important - perhaps more so than the unknowable impact of China AI Model. @StrategasRP
These past few weeks have been interesting:
- Trump talks about taking over Greenland/Canada/Panama - The first crypto-friendly White House aims to create a strategic bitcoin reserve - DeepSeek undermined the belief in US tech supremacy and triggered the biggest 1-day drop in a stock in history
Why did $META and $AAPL stocks go up yesterday?
DeepSeek is open source which means everyone can see exactly how it was done. The coding etc. tech companies can thus study AI now and get a much cheaper price.
DeepSeek V3 ‘bullish’ for Nvidia, would buy on weakness, says Cantor Fitzgerald - Would you agree???
DeepSeek’s V3 large language model is “actually very bullish” for Nvidia (NVDA) and compute, despite “great angst” around the impact for compute demand and fears of peak spending on GPUs, Cantor Fitzgerald tells investors. The firm says DeepSeek’s advances mean artificial general intelligence is closer, and that work will continue on pre-training, post-training, and time-based inference/reasoning, and future investments in large-scale clusters will only accelerate, all of which is bullish for AI. The firm would buy shares of Nvidia on any potential weakness. Cantor has an Overweight rating and $200 price target on the shares. Source: Markets Insider
Investing in technology and specifically artificial intelligence (AI) also seemed to be front and center in the early days of the new administration.
President Trump signed an executive order to "make America the world capital in Artificial Intelligence." The order calls for agencies to craft policy to ensure U.S. dominance in AI. In addition, the new administration has proposed backing a private-sector investment of up to $500 billion to fund infrastructure for AI. The new venture, called Stargate, aims to build data centers – a huge need to support AI computing power – and potentially create up to 100,000 jobs. The investments in data centers and electricity are critical for the U.S. to maintain leadership and be a driver for AI technology and applications. The chart below shows the energy requirements measured in terawatt hours for U.S. datacenters is expected to rise over the coming years. Source: Edward Jones
DeepSeek has completely taken over media with nearly 2,000 news articles published today.
Source: Bloomberg, Adam Kobeissi
Nvidia $NVDA just had the largest single day market cap decrease in stock market history.
By a HUGE margin. Source: Evan
Yesterday was Value's best day vs Growth since October 2008
$SPYV $SPYG Source: Mike Zaccardi, CFA, CMT, MBA
