Nvidia: This Chart Shows Why DeepSeek Doesn't Concern Me

(9min)

Summary

  • I rated NVDA as a Hold earlier and recommended hedging with put options in case of earning surprises.
  • My earlier thesis has run its course prematurely thanks to DeepSeek's new AI algorithm.
  • It caused NVDA stock to drop ~20%, and I don’t think Q4 results can add to the downside surprises anymore.
  • The market drastically overacted in my view.
  • I expect cheaper AI algorithms – either from DeepSeek or someone else - to only trigger accelerated and wider deployment, thus helping NVDA along the way instead of hurting.
  • Looking for more investing ideas like this one? Get them exclusively at Envision Early Retirement. Learn More »
Artificial Intelligence, AI Learning, Machine learning, Internet technology networking concept

Sashkinw

NVDA stock and DeepSeek: Chart of the day

Besides the pursuit of profits, investing is also so intellectually stimulating. After spending decades in the stock market, I kept being amazed, puzzled, and surprised. Sometimes, a thesis could work out beautifully but completely for the wrong reason, which brings

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This article was written by

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Envision Research, aka Lucas Ma, has over 15+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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