A common hypothesis for why Nvidia is so hot is because they have an effective monopoly on the hardware to train AI models and it requires a crap ton of hardware.

With DeepSeek it’s been demonstrated you can get pretty damn for a lot cheaper. I can only imagine that there are tons of investors thinking that it’s better to invest their dollars in undercutting the costs of new models vs investing billions in hardware.

The question is, can Nvidia maintain their grip on the market in the face of these pressures. If you think they can’t, then a short position doesn’t seem like that big of a gamble.