Nvidia stock is up 12% last week - is DeepSeek risk still there?
It has recovered some of its DeepSeek driven losses. Its trading at 128, had dropped to 117 from 140
There's good chance that NVIDA will miss in it's Feb. 26 earnings call.
Possibly but won't be due to lack of demand but rather production. The earnings number won't drive the stock actin as much as the guidance they give
Lets see. I am anxious - I invested $30K at 140. So I am at a loss right now
The point that the press fails to mention about DeepSeek is that their latest model used 2,048 NVIDIA H800 GPUs which alone are worth $143M not the silly number of $6M that it takes to rent the computing power.
Additionally, Scale AI CEO Alexandr Wang has stated that DeepSeek possesses 50,000 NVIDIA H100 GPUs or at least $3.5B worth
Additionally, Scale AI CEO Alexandr Wang has stated that DeepSeek possesses 50,000 NVIDIA H100 GPUs or at least $3.5B worth
With the way DeepSeek procure their training data, Scale AI has biggest to lose. Of course its founder, CEO, and self-claimed youngest billionaire in the world will have to stretch his criticism. Read the DeepSeek paper - it is public and in English.
Please could you provide hard evidence for your claims? There is the paper Deepseek published, which proves there was no need for NVIDIA H100 GPUs. You can google key words: AUXILIARY-LOSS-FREE LOAD BALANCING STRAT- EGY FOR MIXTURE-OF-EXPERTS
AMZN, GOOGL, MSFT, & META are in competition to maintain/capture market share in data center services & products. Hence, they have to spend sufficient CapEx $$$ to maintain mkt share or risk losing to their competitor.
What we know about planned 2025 CapEx spending by the biggest of the big tech's:
- AMZN $100B
- AAPL $2.9B
- GOOGL $75B
- META $65B
- MSFT $80B
- Tesla $11B
Total = $300-350B
Companies that could benefit from the above CapEx spending are: NVDA, AMD, INTC, AVGO, MU, DELL, TSM, ASML & several semiconductors support companies employed in the Mfg of AI GPU chips/systems & construction of data centers.
What we know about planned 2025 CapEx spending by the biggest of the big tech's:
- AMZN $100B
- AAPL $2.9B
- GOOGL $75B
- META $65B
- MSFT $80B
- Tesla $11B
Total = $300-350B
Companies that could benefit from the above CapEx spending are: NVDA, AMD, INTC, AVGO, MU, DELL, TSM, ASML & several semiconductors support companies employed in the Mfg of AI GPU chips/systems & construction of data centers.
These are just the announcements. Profit margin in "AI as a service" is non-existent and is shrinking even more due to open source models. Even if you ignore the topic about DeepSeek's true training costs - their inference price is there for anyone to see. Its 1% of OpenAI/Claude.
Right now companies are not worried about profits - they are all fighting to protect their turf. But eventually numbers will converge around "what is profitable". If end customer's are paying DeepSeek rates, then all these tech companies will lower capex.
Right now companies are not worried about profits - they are all fighting to protect their turf. But eventually numbers will converge around "what is profitable". If end customer's are paying DeepSeek rates, then all these tech companies will lower capex.