This is probably a massive overreaction. No one is cancelling orders and the future of AI is still going to heavily involve GPUs. If not for LLMs, then for image and video generation.
Of course, if the stock was overly inflated from false expectations, this could certainly be a resetting to the normal.
Also, I can't help but feel like DeepSeek is a red herring for the market overall. The stock market's overall dip didn't happen until after the slew of Executive Orders hit. The federal spending cuts are certainly going to affect the bottom line of businesses, and they add to the seriousness of some of the other anti-economic threats like tariffs.
Of course, if the stock was overly inflated from false expectations, this could certainly be a resetting to the normal.
Also, I can't help but feel like DeepSeek is a red herring for the market overall. The stock market's overall dip didn't happen until after the slew of Executive Orders hit. The federal spending cuts are certainly going to affect the bottom line of businesses, and they add to the seriousness of some of the other anti-economic threats like tariffs.