The year began well for Nvidia. On January 29, 2025 its capitalization reached 3.49 billion dollars and everything seemed to go on wheels. Deepseek R1’s surprise changed things a lot and joined other factors to cause spectacular collapse. Two months later, this Nvidia market capitalization is 2.77 billion dollars: it is almost 21% less. That effect has been contagious, but one of the greats is falling the storm.
Apple. As they point out in five days, that January 25, 2025 Apple had a capitalization of 3.55 billion dollars, and at the moment that value is 3.35 billion, 5.6% fall. Sensitive, of course, but much less than that of its rivals of the group of “The Magnificent Seven”. That they have stayed in …
Not so magnificent. Next to the fall of Nvidia are those of Microsoft, Alphabet, Amazon, Meta and Tesla – as we say, is saved a little. If we analyze the evolution of market capitalization of the seven the performance of these two last months, the “average” drop is 13.5%. They have lost more than two billion dollars compared to 15.58 billion dollars in late January, a real collapse.
It’s not just care. The impact of Deepseek has not been the only factor that has contributed to those falls. They have had a lot to do with the recent tariffs that Trump is imposing on imports of all kinds of products – foreign cars are the last victims. These taxes and Trump’s protectionist policy are forcing many companies to restructure their strategy, and investors – and consumers – are clear what the impact of all this will be: Price increases everywhere.
Why does Apple endure? Of the great technology, Apple is the only one that has managed to mitigate the losses relatively. Probably partly because of his “warm” attitude to AI. His interest in data centers fever is practically null, and despite recent criticism it is clear that he is not “burning money” as other companies in the sector do. The rest of the group has invested true fortunes in this segment, although some are stopping.
Bubble in sight? These days are 25 years of the bubble of the Puntocom, and what is happening with the great technological and the AI segment makes a bubble of AI. There are certainly similarities between both situations, but also important differences.
Apple, especially solid. Cupertino’s company is usually more immune than its rivals to these fluctuations in the world of finance. Faced with complaints about the relative lack of innovation or new disruptions, Apple has managed to diversify income – especially with the expansion of its services – and continues to maintain confidence of both investors and users.
Imagen | Zhang Kaiyv
In WorldOfSoftware | Deepseek R1 is not just another AI model: it is the greatest existential threat that Silicon Valley has faced
