China's DeepSeek released an AI model reportedly trained at a fraction of the cost of leading U.S. models, sparking a market-wide reassessment of AI infrastructure spend. Nvidia, the primary beneficiary of the AI capex supercycle, dropped 16% — one of the largest single-day market-cap wipeouts in history — as investors fear that compute-efficient models could reduce hyperscaler GPU demand. Nvidia's fundamentals remain exceptional: $215.9B in revenue (+65.5% YoY), 71.1% gross margins, and $4.90 diluted EPS represent a business firing on all cylinders.

The question the market is now pricing is whether DeepSeek signals a demand plateau or simply expands the total addressable market for AI by making it cheaper to deploy. Key things to watch: hyperscaler capex guidance in upcoming Q4 earnings calls (Microsoft, Meta, Alphabet, Amazon), any Nvidia management response or investor day commentary, and whether the sell-the-news momentum extends or reverses on fundamental re-engagement.