The WSJ editorial pushes back on the DeepSeek panic trade, arguing that a more efficient open-source Chinese model does not structurally impair demand for U.S. AI hardware. Nvidia posted $215.9B in revenue (+65.5% YoY) with a 71.1% gross margin and $4.90 diluted EPS, while Broadcom reported $63.9B (+23.9% YoY) at 67.8% gross margin — numbers that are difficult to square with a narrative of imminent demand destruction.

The key question is whether DeepSeek's efficiency gains compress hyperscaler capex or — via Jevons Paradox — actually expand demand for compute as inference costs fall. Watch for hyperscaler capex guidance in upcoming earnings calls and any revision to NVDA's Blackwell order pipeline as the clearest near-term signal on which scenario is playing out.