Nvidia and the Phantom of DeepSeek

Last January, a tremor ran through the markets, a most peculiar disturbance. It was not a matter of ledgers unbalanced, nor tariffs imposed, but a whisper from the East – a rumour of DeepSeek, a Chinese enterprise, possessing an artificial intelligence that dared to rival our own. A most audacious claim, you understand. And the cost? A pittance, they said, a trifle! As if intelligence itself could be conjured from thin air, or grown in a garden like turnips. The effect, naturally, was…unsettling. The shares of Nvidia, that purveyor of silicon dreams, commenced a most dramatic descent, a fluttering fall like a moth drawn to a dying flame.

One observes such episodes with a certain detached amusement, for history is replete with these phantom menaces, these fleeting anxieties. The market, that capricious beast, is ever prone to fits of hysteria, mistaking shadows for substance. Yet, to dismiss it entirely would be folly. For even the most preposterous rumour can, in the hands of a sufficiently excitable populace, become a self-fulfilling prophecy. And so, Nvidia tumbled, a spectacle for the vultures and the bargain hunters.

The Seventeenth of the Fall

On the twenty-seventh of January, two thousand and twenty-five, the shares of Nvidia closed at one hundred and eighteen dollars and forty-two cents. A decline, if one considers the previous day’s valuation of one hundred and forty-two dollars and sixty-two cents, of approximately seventeen percent. A considerable sum, enough to purchase a small estate in the countryside, or perhaps a lifetime supply of pickled herring. Had one, with a gambler’s spirit and a touch of foresight, acquired these shares on that fateful day, and held them for a year, one would now find oneself possessing a valuation of approximately one hundred and eighty-eight dollars. A gain of fifty-nine percent! On an investment of five thousand dollars, a profit of nearly three thousand. A sum sufficient to keep a modest family in comfort, or to finance a truly extravagant collection of porcelain figurines.

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The Spectre of DeepSeek Revisited

Given the current valuations, the inflated egos, and the relentless march of progress, it is prudent for investors to prepare for another such episode. The market, as we have observed, is a fragile thing, susceptible to the slightest tremor. Another sudden decline is not merely possible, but inevitable. One recalls the DeepSeek incident, the tariff disputes of last April, the pandemic-induced panic of twenty-twenty. In each case, preparedness and a well-considered plan would have proven invaluable.

If, in the case of Nvidia, one possesses a firm conviction in its long-term prospects, one should consider acquiring more shares during a market downturn. If one’s investment horizon extends several years, one must brace oneself for volatility and remain steadfast, even in the face of adversity. But above all, one must have a plan. For in the chaotic dance of the market, a plan is the only thing that separates the fool from the fortunate.

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2026-02-06 20:32