Stocks Sink in Broad AI Rout Sparked by China's DeepSeek
Semis
China's DeepSeek triggered a broad AI infrastructure rout, with Nvidia falling ~16% and the Nasdaq leading declines across the sector. The event raises legitimate questions about the capital intensity of AI buildout — if efficient open-source models can match closed frontier models at a fraction of the compute cost, the demand thesis for high-end AI chips faces a structural re-rating.
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↓ SHORT-12% target+6% stop2-4 weeks, into next NVDA earningsFeb 26 '25
Fade the dead-cat bounce in NVDA near $220-230 resistance — the DeepSeek demand shock is a structural overhang, not a one-day event, and consensus was already priced for perfection.