China's AI and Tech Stocks

[Carborendum]

I noticed a huge slump in tech stocks (I'm heavily invested).  And it appears that it is due to China's development of their AI DeepSeek.

Trump had the following to say about it.

Quote

Last week, I signed an order revoking Joe Biden’s destructive artificial intelligence regulations so that AI companies can once again focus on being the best, not just being the most woke.  Today and over the last couple of days, I’ve been reading about China and some of the companies in China, one in particular, coming up with a faster method of AI and much less expensive method.

And that’s good because you don’t have to spend as much money.  I view that as a positive, as an asset. So I really think if it’s fact, and if it’s true, and nobody really knows if it is, but I view that as a positive, because you’ll be doing that too, so you won’t be spending as much and you’ll get the same result, hopefully. The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries, that we need to be laser-focused on competing to win, because we have the greatest scientists in the world.

...

Under the Trump administration, we’re going to unleash our tech companies, and we’re going to dominate the future like never before.

This is the sentiment that will allow us to win.  Competition?  Pbthbbt!  We are the best competitors in the world. That's how we get Americans going.  It isn't "more government money."  It is the vision to win.  It is the great old American competitive spirit.  That's why we're the best.

• You spend tens of billions to develop this over 5 years.  We'll spend less than a billion in 1 year and surpass you!
• You force people to work until they break.  We incentivize so they give us their best work.
• You're ahead today.  We get ahead whenever the gauntlet has been thrown. 

And you, sir, have thrown it at the wrong people.

So, anyway.  It looks like it is a great time to save some money because the low point will be hit in the next couple months.  That's when you put your money in. Thanks, Fibonacci.

Edited January 28 by Carborendum

[NeuroTypical]

Oof - sorry you took a bath.   My 401k is down a bit, but it's still up for the month.  Guess I'm not as heavily invested in nVidia.

That said, I'm lost.   I don't see how the quote translates into your comments.  I don't get who "You" and "We" are in your bullet points.  I don't get who you think Trump is throwing things at.  Could you clarify your gripe?

 

For what it's worth, my little news scrape took a poll of it's readers:

Edited January 28 by NeuroTypical

[Carborendum]

42 minutes ago, NeuroTypical said:

Oof - sorry you took a bath.   My 401k is down a bit, but it's still up for the month.  Guess I'm not as heavily invested in nVidia.

That said, I'm lost.   I don't see how the quote translates into your comments.  I don't get who "You" and "We" are in your bullet points.  I don't get who you think Trump is throwing things at.  Could you clarify your gripe?

 

For what it's worth, my little news scrape took a poll of it's readers:

I was saying what you just said.

The bullet points were what Americans are saying to China.

My investments go up and down a lot.  As long as I stay in, the long term returns are above 15%.

Edited January 28 by Carborendum

[Carborendum]

DeepSeek might not be as disruptive as claimed, firm reportedly has 50,000 Nvidia GPUs and spent $1.6 billion on buildouts | Tom's Hardware

Summary: China spent a lot more money on developing DeepSeek than they let on.  And it is nowhere near the level that they claimed it was.  It's basically just a big nothingburger and they spent a lot of money to do nothing more than copy Nvidia.

At the time of the OP, I had no idea how much they had spent.  But they claimed that they spent virtually nothing on it and that their chips were really simple.  It was all a lie.

So, we can expect our tech stocks to start rising again.

Edited February 5 by Carborendum

[NeuroTypical]

I asked it about Taiwan and wasn't impressed.