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)

  • zlatiah@lemmy.world
    2·
    4 hours ago

    Disclaimer: not a professional investor, trader, or finance researcher. I literally just have a mix of US and international index funds and bonds.

    These are just my personal opinions and I probably don’t know more than OP… My view of the stock market, especially with short-term changes is… I don’t assume anything to make rational sense, or that the market could really be quite stupid.

    Maybe my view was influenced by A Random Walk Down Wall Street… but my main consideration was below:

    • So-called “meme stocks” and hype cycles have existed for hundreds of years, much longer before the current LLM hype and the previous crypto hype
    • There is a somewhat “successful” strategy of buying a stock to sell it to the next sucker, which would be very prone to the entire thing collapsing

    Especially considering that LLM is the current hype (and the hype cycle might be ending), I… imagine just about anything could happen.

    More specifically regarding Nvidia though, I mean they’ve already made their fair share of money because their technology was used for both crypto and LLMs so… They already won anyway, so who’s really hurt from their stock dropping a bit?