Well, no everyone.

FOMC started meeting for two days this morning, and while we know that they are busy discussing inflation and the labor market, I am also ready to bet on the shares.

The market, at least at the present time, is dominated by an overwhelming majority by the AI ​​trade.

Deepseek from AI AI motivated a trillion dollars in US and European technology shares yesterday.

Nafidia was a great loser. The shares closed 17 % less on Monday. Meta was actually amazingly amazing, which led to early losses from the Monday session after the opening of 3 % less.

Microsoft lost more than 2 % and closed the alphabet over 4 % less. In Europe, Siemens Energy decreased by 19 %.

Many to empty here. First, what was exposed to investors?

Deepseek claims to have trained the new artificial intelligence model at a cheap price. Like, really cheap. 5.6 million dollars to be accurate.

If this is not a deal, here is a comparison to putting things in its correct perspective: the CEO of Antarbur Dario Amani He says Building their models costs between $ 100 million and $ 1 billion. Openai said that the GPT4 training came with a bill for nearly $ 100 million.

Even if you do not buy Deepseek's claims of $ 5.6 million-and we are clear, we must all take this self-reported number with a huge grain of salt-company Do It seems efficiently that artificial intelligence companies do not own in the United States.

Deepseek also says she uses a small part of the computing power required by operating other models, such as Llama's Meta, which helped R1 training. Thanks, open source.

In that memo, Mark Zuckerberg was said to have collected four different "war rooms" in Meta, each of which is intended for Deepseek analysis. With a loom on the horizon in the profit season, we expect that most of the artificial intelligence companies will have a similar set.

"The issue of the chip" is another pain point for us. The Biden era export restrictions may not work on graphics processing units as we were hoping. Or Chinese companies find other work procedures. Either way, this not only raises concerns about the demand for chip providers such as NVIDIA, but also about national security.

Doom and Clamps, it seems that investors have woke up this morning in a better mood. Or in a mood to take advantage of the discount, at least. NVIDIA shares returned to green, as they were traded at 7 % at 2 pm Each time.

"Although Dipsik promised, we doubt that prominent clouds and artificial intelligence sellers will stop their plans, although it is definitely risk."

"We believe that the demand for the AI ​​graphics processing unit still goes beyond the supply, so although the less -sized models may allow more development for the same number of chips, we still believe that technology companies will continue to buy all graphics processing units that can as part of This gold. "

NVIDIA Execs will have some difficult questions to answer their Q4 profits call. Lucky to them, they have about four weeks to prepare.

As much as the FOMC decision tomorrow, the markets expect an overwhelming majority that the central bankers maintain interest rates. I doubt that Powell will comment a lot on the position of artificial intelligence, but I will not be surprised if I am asked during the press conference.

Watch your inbox tomorrow for updates.

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