Closing Bell Closing Bell: The Deep Sink 1/27/25
Jan 27, 2025
Stacy Rasgon, a leading chip analyst at Bernstein known for his deep insights into the semiconductor sector, joins the conversation. He discusses the impact of AI competition on NVIDIA and the broader tech market. The podcast delves into advancements in AI, highlighting DeepSeek's role in shifting efficiency and cost dynamics. They touch on the volatility of tech stocks and the need for diversification into resilient sectors. Geopolitical concerns and the implications for major players in AI and semiconductor technologies are also significant talking points.
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Episode notes
AI Narrative Shift
- The AI narrative has shifted from pre-training to inference, impacting infrastructure needs.
- Open-source models like DeepSeek challenge the dominance of proprietary models, raising geopolitical concerns.
DeepSeek's Efficiency and Market Overreaction
- DeepSeek's efficiencies are due to known techniques, not miracles, causing market overreaction.
- Cost reduction in AI is positive for wider adoption, similar to the semiconductor industry's success.
Nvidia's Valuation and DeepSeek
- Nvidia's high valuation relies on its perceived moat and exclusivity in the AI chip market.
- DeepSeek's achievements raise questions about whether the most expensive chips are essential for AI advancements.