Post-Explosion, Seeking the DeepSeek Fallout
At the start of the week, I likened the DeepSeek situation to a bomb being detonated in the epicenter of the technology industry. This was before the markets were set to open on Monday with massive damage likely coming to the power players of tech. Sure enough, when the smoke cleared, NVIDIA had lost nearly $600B in market cap on the day.1 The largest single-day loss ever, more than double the next closest drop.2 The damage ended up being far less to the other players and a few, such as Apple, actually saw a big uplift thanks to the news. Aside from NVIDIA, the market was seemingly doing its thing, shifting from a voting machine back to that weighing machine even just over the course of the day. And sure enough, when the market opened the next day, even NVIDIA stabilized as more rational actors saw a buying opportunity. The destruction, it seemed, was limited.
But fallout is a hell of a thing. It spreads more slowly and silently. It's not the fireball, but it can still be deadly. That's what we're looking for and dealing with now...