I don't know if you've heard by now, but today's dip is mainly because DeepSeek, a Chinese artificial intelligence company has developed an open-source artificial intelligence model that some say works better than ChatGPT and other US AIs, and more importantly, does it for a fraction of the cost. This comes shortly
after the US announced a $500B investment in AI.The tech bubble has been behind the success of Nvidia, the world's most profitable company until MicroStrategy came into play. These companies, many of which have AI projects, have caused a huge demand for hardware that with the success of DeepSeek is now in doubt as to whether it will continue to be needed.
As a result, Nvidia is currently down 17% in today's session, and the Nasdaq is down 3.32%. As you may have noticed it has affected the markets in general and also bitcoin and cryptocurrencies which are also trading down today.
Here is an article on the subject:
Why Is DeepSeek Sinking Nvidia Stock?What do you think about it?
Although a technological development initially has a negative impact on the markets, it always creates a positive impact in the future. Development is not achieved by waiting for just one company to develop a product, but by many companies producing different products. Technologies that are inspired by each other contribute to each other's development. I think it would be more accurate to look at the situation from this perspective.
The world immediately adopts technology and can immediately choose the most useful one. I think that more steps will be taken, especially in artificial intelligence. The speed of technology development will increase greatly after a while, and those who keep up with it will benefit greatly.