"Unexpected" is the biggest risk for NVIDIA and US stocks! DeepSeek is just the beginning
Legendary short seller Jim Chanos and venture capital firm a16z's Steven Sinofsky pointed out that the biggest risk facing NVIDIA and U.S. stocks is "the unexpected." Sinofsky used IBM as an example, emphasizing that NVIDIA's "bigger is better" mindset may face challenges, and the emergence of DeepSeek could be a turning point, driving a shift from scaling up to expanding scope, which poses significant risks to the U.S. stock AI market that relies on computing power
Recently, legendary short seller Jim Chanos and Steven Sinofsky, a board partner at the top global venture capital firm a16z and former president of a Microsoft division, stated that the biggest risks for NVIDIA and the U.S. stock market are "unexpected," and that DeepSeek may just be the beginning.
Sinofsky used IBM as an example, stating that in the past, IBM focused on making machines larger, only to be replaced by distributed PCs. Therefore, NVIDIA's "the bigger, the better" mindset also faces challenges.
For instance, DeepSeek breaks the traditional method of U.S. companies relying on massive computing power to build large models, focusing instead on transitioning from scale-up to scale-out.
This could pose a significant risk to the U.S. AI market, which is centered around NVIDIA and computing power investments.