One did not have to seek too deeply to find the biggest market event of this week.
China’s DeepSeek AI, which is now the subject of investigations into whether China procured NVIDIA chips it isn’t supposed to have access to, truly rattled NVIDIA’s share price but not because of chips. It’s because it has an AI model at all.
Very similar to OpenAI and ChatGPT (but don’t ask it about Taiwan,) the entire market world seemed shocked that China – very good in its own right at making tech work – came out with a large language model.
Personally, I can’t help but think there’s a bit of Americentric thinking in that shocked reaction, but hey. The big takeaway is NVIDIA staged the largest overnight loss in history and until it recovers, the big ASX data centre stocks probably won’t either.
Also in America: while Apple beat Wall Street estimates in its latest earnings report (only just,) some interesting analysis – if not rather amusing – came from JP Morgan this week relating to Tesla’s latest earnings report.
The Elon Musk headed company missed Wall Street earnings expectations by a whopping 38%, and then Tesla shares jumped 5% higher in aftermarket trades which is widely seen as an attempt by persons unknown to pump the stock.
On an earnings call, Musk said that future earnings would be “epic” and claimed that its AI humanoid robot – which we don’t even know truly exists yet, seeing as human actors have been used to assist when it’s rolled out at expos – could generate trillions in revenue.
Big claims. Lucky he’s rich and besties with Trump.
Let’s go back Down Under. Sigma Healthcare popped early week as Chemist Warehouse earnings were revealed to be pretty tasty. Chemist Warehouse, after its faux merger with Sigma, lists mid-Feb.
Brainchip took a dive on DeepSeek despite not really being an AI stock no matter how much it wants to talk about the thematic, and we also learned young Australian men are taking a liking to Dutton.
Perhaps all he needs to keep doing is literally just copying whatever Donald Trump says.
See you next week – have a safe weekend.
Australian Equities
- Magnis Energy’s NY battery ‘gigafactory’ finally goes under for good
- Sigma Healthcare pops 12% on Monday as Chemist Warehouse sales proven juicy
Australian Economy
- Young Australian men are taking to Dutton as latter copies Trump soundbites
- Australian business confidence remains rangebound in post-lockdown doldrums
International Equities
- NVIDIA slammed as China’s DeepSeek rattles market confidence
- Apple forecasts revenue growth next quarter as latest beat a slither
- Tesla shares jump as Tesla misses estimates but promises trillions in revenue – concerning JP Morgan
International Economies
- US Fed keeps interest rates on hold as inflation pressures start looking hotter
- Trump has warned tariffs on Canada and Mexico will hit this weekend
Commodities