Amazing what one single news event can make to the hole market... Is it such a big deal?
Well, an impressive AI comming from China, that is supposedly performing as good as ChatGPT or LLama with way less resourcess (and I say supposedly as no one really knows anything when it is comming from China...). Is this really going to change everything?
My worst performers today are $CLS (+9.13%) , $STRL (-2.24%) and $POWL (+0.35%) all of them linking their exceptional performance this last months to the AI infrastrure. Will they suffer that much?
They're american companies, with mainly an american business, in a country that has put its focus on compiting with China for the AI dominance. China has an AI that can work as ChatGPT with less resources, so what...? Is USA going to stop investing in it for that reason? Or maybe the opposite?...
Does what DeepSeek has achieved, mean that the Big Tech are investing too much in "super chips" when they could do the same with less investing and less data centers? Maybe... But will they stop the investments in data centers? If something like what DeepSeek did can be achieved with less powerful chips, what will the Big Tech be able do with the "super chips" of Nvidia? Sky is the limit, and the american Big Tech have the capacity of burning cash trying to reach it, while they keep earning billions.
While I'm sad I lost more than 15% on this 3 stocks valuations and my profits are less nice than they were on Friday, I still see this companies in a very nice shape to keep growing, and the AI market to keep expanding. Even with the fall valuations are not super beautiful (considering the noise), but this might be an oportunity for the ones that didn't invest before in this companies to get a piece of them now.
I'm not going to use this to add more of this stocks to my portfolio at this point, as the 3 of them are at levels of 1 month ago and I already have them in my portfolio, but if this blood bath continues I'll fell I have to... This is the breather that at some point was going to come with the big rally they've been running.
update* bought some $CLS (+9.13%) 25% down was too tempting for a stock I follow closely