Nvidia falls 14% in premarket trading as China's DeepSeek triggers global tech sell-off
DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million.
cross-posted from: https://lemm.ee/post/53805638
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Good. That shit is way overvalued.
There is no way that Nvidia are worth 3 times as much as TSMC, the company that makes all their shit and more besides.
I'm sure some of my market tracker funds will lose value, and they should, because they should never have been worth this much to start with.
It’s because Nvidia is an American company and also because they make final stage products. American companies right now are all overinflated and almost none of the stocks are worth what they’re at because of foreign trading influence.
As much as people whine about inflation here, the US didn’t get hit as bad as many other countries and we recovered quickly which means that there is a lot of incentive for other countries to invest here. They pick our top movers, they invest in those. What you’re seeing is people bandwagoning onto certain stocks because the consistent gains create more consistent gains for them.
The other part is that yes, companies who make products at the end stage tend to be worth a lot more than people trading more fundamental resources or parts. This is true of almost every industry except oil.
It is also because the USA is the reserve currency of the world with open capital markets.
Savers of the world (including countries like Germany and China who have excess savings due to constrained consumer demand) dump their savings into US assets such as stocks.
This leads to asset bubbles and an uncompetitively high US dollar.
The current administration is working real hard on removing trust and value of anything American.
Yuuuuup...might just put their market into.....🤔 Freefall?
The root problem they are trying to fix is real (systemic trade imbalances) but the way they are trying to fix it is terrible and won't work.
I consider myself to be a Saver of the World.
Our Lord and Saver
That probably also means that when the trend reverses it will turn into a rout.
The US is also a regulations haven compared to other developed economies, corporations get away with shit in most places but America is on a whole other level of regulatory capture.
But TSMC is "encumbered" by all of these plant and equipment mate 🤡
Yeah lot of companies are way overvalued look at Carvana, how is this company worth 50 billion?
