DeepSeek's Model Release Triggers Market Turmoil and Revaluation
- Market Turmoil: DeepSeek's release of the V3 model in late 2024 caused Nvidia's stock to plummet 17% in a single day, erasing nearly $600 billion in market value, highlighting the panic over China's AI competitiveness.
- Revaluation of Expectations: The January 2025 launch of the R1 model exceeded expectations, prompting analysts to reassess China's position regarding frontier model costs and competitiveness, which directly impacted the semiconductor and hyperscaler sectors.
- Stable Spending: Despite initial fears of declining demand for AI hardware, analysts noted that spending remained steady throughout 2025, with forecasts indicating a potential acceleration in 2026, reflecting a recovery in market confidence towards AI investments.
- Computational Limitations: The delay of DeepSeek's R2 model due to computational bottlenecks underscores China's limitations in accessing high-performance computing resources, further emphasizing the challenges posed by reliance on U.S. technology.
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Technical Analysis for
Technical Sentiment Analysis for () As of , () is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 0 technical signals, shows that 0 indicators are flashing buy, while 0 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
() Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | - | - | - | - | - | - | - |
| Fibonacci | - | - | - | - | - | - | - |
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