Market Turmoil: DeepSeek's Impact on NVIDIA and Big Tech

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Jan 27, 2025

The discussion kicks off with the disruption caused by the Chinese AI company DeepSeek, impacting tech giants like NVIDIA. The hosts explore potential competition and the effects on stock prices, raising questions about the future of AI investments. Interest rates and their ties to the Federal Reserve's decisions take center stage, intertwined with geopolitical tensions. They also analyze the upcoming earnings reports from major players like Microsoft and Meta, while highlighting the significance of economic indicators on the technology sector's future.

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INSIGHT

Market Turmoil from DeepSeek

DeepSeek, a Chinese AI company, has introduced a new large language model.
This has caused market turmoil due to concerns about its impact on major tech stocks like NVIDIA.

INSIGHT

DeepSeek's Impact on NVIDIA

NVIDIA's high valuations and gross margins are now under scrutiny due to potential competition.
The market is reacting to DeepSeek and questioning the sustainability of NVIDIA's dominance.

INSIGHT

Trump and Interest Rates

Trump's comments on interest rates being too high add to market concerns.
The Federal Reserve's stance on interest rates will be closely watched this week.

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Guy Adami, Dan Nathan and Liz Young Thomas from SoFi, dive into the market turmoil precipitated by the introduction of DeepSeek, a Chinese AI company, and its impact on major tech stocks like NVIDIA, Microsoft, and Google. The conversation addresses the broader implications of AI competition on market valuations, the potential for increased regulatory and political pressures, and the Federal Reserve's stance on interest rates. The hosts speculate on the future landscape of AI investment and its effect on sectors like software, retail, and industrials. They also touch on upcoming key economic data releases and significant earnings reports from tech giants scheduled for the week.

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