NVIDIA (Nasdaq: NVDA)) The actions did a mad race this week after the Chinese startup Deepseek announced that it had built a chatbot AI using much less computing power than anyone who thought it possible.
Some experts are skeptical, thinking that Deepseek could minimize the resources they have used. Others believe that this could make AI more accessible and widespread, while some remain convinced that American technological primacy and premium chips will continue to stimulate the progress of the use of AI, robotics and Autonomous systems.
However, one of the main investors, known by the pseudonym trapping value, does not buy any of the explanations.
“What Deepseek has done is to constantly destroy the story that this CAPEX AI can create sustainable margins,” says the trapping value, which ranks among the 4% most important of Tipranks pros.
The investor maintains that the dazzling climb of Nvidia has been fed by beneficiary margins which are ultimately not durable. As proof, the trapping of value indicates the financial difficulties of the main consumers of AI chips, noting that the AI revolution has not yet translated as profits.
The trapping of the value highlights Meta, Microsoft and Openai as first -rate examples – companies depict billions in AI while losing money on their projects. The investor is particularly lower on Openai, citing projections according to which the company could accumulate $ 44 billion in losses by 2028.
“Everyone loses money on AI, except NVDA and Avgo,” noted the trapping value. “The hopes of flea manufacturers to continue to rest the money on this madness of investments without continuous return.”
The commodification of the AI - and the PUces of AI that feed the technology – warns the investor. This will result in the collapse of the gross beneficiary margins of companies like Nvidia, which means the end of the history of the growth of semiconductors.
“Deepseek showed exactly where the bubble was, in the margins of Wall Street chip”, concludes the trapping value, which evaluates NVDA shares a strong sale. (To look at the history of the trapping value, click here)
“We will have to accept to disagree” seems to be the feeling of Wall Street. With 37 purchase dimensions and 3 holdings, NVDA benefits from a strong note of purchase consensus. Its price target of 12 months of $ 178.63 suggests an increase in ~ 43% for the next 12 months. (See NVDA actions forecast))
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Warning: The opinions expressed in this article are only those of the star investor. Content is intended to be used for information only. It is very important to do your own analysis before investing.
