These movements could be driven by stability expectations in key sectors, despite the recent volatility linked to tensions in the technology industry and developments in artificial intelligence.
The actions of Nvidia and Broadcom They climb 5% in the operations prior to the opening of Wall Street, although this rebound is not enough to compensate for Monday’s falls, when both actions collapsed 17% due to concerns about the demand after the emergence of the chatbot of the low cost Deepseek.
Veriv, which offers services for data centers, and Visra, a nuclear energy producer, also registered an increase of 5%. It should be remembered that in the previous session, Nvidia registered the greatest loss of marketcap in the history of financial markets.
Meanwhile, in terms of Wall Street futures: S&P 500 rises 0.4%, while Nasdaq 100 futures increase 0.7%. Dow Jones Industrial Avenge advances 19 points.
The antecedent of Nvidia
Since its maximum peak, the market capitalization of the chips manufacturer fell below the US $ 2.9 billion, which erased more than US $ 700 billion from that point.
This occurs after the startup of China, Deepseek, announced that it took two months and less than US $ 6 million to build its AI model. In comparison, Openai spends more than US $ 5 billion a year.
The Chinese startup also declared having acquired 10,000 Nvidia chips, while the members of the group “Magnificent 7” have bought several times more than that. Basically, Depseek claims to have created a model of the equal or even more efficient, But at a much lower cost.
Deepseek.jpg
In other words, the members of “Magnificent 7” could have excessively spent in terms of capital expenses in AI, which does not predict anything good for the income and profit growth of their data centers.
This could also indicate that current market valuations are too extreme. While we do not know with certainty if China’s numbers are completely precise or what this could mean for the “magnificent 7” and the technological actions of the United States, the market has already reacted strongly.
Interestingly, the news number about “Depseek” shot over the weekend, while panic seized Silicon Valley.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
