Can you believe it I just bought up to 1/2 positions in NBIS, CLS, and VRT on Friday and now there all down 20 -35%. Where do we go from here? Have they suddenly lost their relevance? What would 5i do?
Thank you
DeepSeek may be a Black Swan event, but even if it is not as good as people think it will impact sentiment for sometime. There is a possibility than more efficiency will result in more compute power needed, as AI applications become cheaper and thus everywhere. More efficiency may mean 'every' company can utilize AI and not just the mega cap companies with billions. All of this remains to be seen. The timing of course was bad here, but sometimes that happens. Our advice this week, and possibly a bit longer, is to do nothing. There will be more developments, and possibly fear here, but we need to see how companies comment on this development in their earnings calls. Risks have increased, and we would expect higher volatility for some time. But prices have adjusted so there remains some opportunity as well. We have other NBIS comments posted earlier today as well.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VRT, NBIS.