Part 4/10:
The announcement of Deep Seek sent shockwaves throughout the stock market. Investors quickly reassessed their strategies as traditional models began losing their value proposition. Nvidia's stock, previously buoyed by the excitement over AI, faced downward pressure amid fears that AI innovation could now be achieved with significantly less investment in hardware and infrastructure. This shift has awakened investors’ concerns about the sustainability of their existing portfolios reliant on high-capex technologies.
In this moment of uncertainty, many traders turned to shorts and other strategies that indicate market skepticism. The volatility exemplified how rapidly market sentiment can shift when fundamental perceptions of technology change.