If you spent your weekend watching football, then you know the Philadelphia Eagles just punched their ticket to the Super Bowl.
Regular readers know I’m a big Eagles fan. So before we dive into today’s news, I want to say congrats to all my fellow Eagles fans out there!
Outside of an important weekend for football, the biggest headline from this weekend was about China’s DeepSeek.
If you’re not familiar with DeepSeek, here’s a quick recap…
In December, a Chinese artificial intelligence (AI) company called DeepSeek made waves by unveiling a free, open-source large language model (LLM). The company claims this AI model was built in just two months for under $6 million. That news alone turned heads.
But last week, the company took things to the next level. It announced a new model that supposedly rivals OpenAI’s ChatGPT and Meta Platform’s (META) Llama 3.1. And get this – DeepSeek climbed to the top of Apple’s (AAPL) App Store rankings over the weekend.
Here’s the kicker: DeepSeek claims to have developed this groundbreaking model using lower-capability chips than Nvidia (NVDA) – sidestepping the semiconductor giant’s premium hardware.
If other companies follow suit, it could spell trouble for Nvidia’s dominance in the AI chip market. This is the kind of shake up that could send ripples through the entire tech sector.
And today, the rippling began. I start my day by waking up and checking the futures market. So if you’re anything like me, I’m sure you saw the tech-heavy Nasdaq fell about 4% – led by a 14% sell-off in Nvidia. Both the index and Nvidia bounced back from the lows, but the fears were evident.
Of course, by the time you receive this e-letter midday on Monday, I’m fairly certain the numbers will look quite different.
So in today’s video update, I’m going to share my thoughts on whether this is the start of a black swan event that could end the bull market, or if this is simply a bull market freak out that could lead to a great buying opportunity. Either way, savvy investors should start paying attention.
I’ll give you all my thoughts in today’s video. Plus, I’ll take a look at some stocks that are taking a hit that you might want to consider during the pullback.
Don’t miss today’s video update above.
Here’s to the future,
Matt McCallEditor, Market Insights
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