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Speaker 1: The American market seems to have got over themselves this time. Yesterday.

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Speaker 1: Of course, the freak out over Deepseek was on this

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Speaker 1: tube and cheerful AI tool out of China that took

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Speaker 1: a lot of is my surprise New Zealand superannuation fund

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Speaker 1: that took a hit yesterday. In Vidia, of course took

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Speaker 1: a bath. Craig's Investment Partners director Mark Lister is with

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Speaker 1: us on this Marke. Very good morning to you.

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Speaker 2: Morning, Mike, Hey, you going well?

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Speaker 1: Thank you? What do you make of yesterday when it unfolded?

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Speaker 2: It was a pretty big day, wasn't it. I guess

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Speaker 2: what was interesting was the reason for the moves, and

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Speaker 2: I guess the concentration of the moves. You know deep

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Speaker 2: seeks model. What surprised everybody is that it seems to

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Speaker 2: run on less advanced chips and they can seem to

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Speaker 2: do it with lower costs. So I guess that's a

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Speaker 2: good thing and a big picture sense. You think about productivity,

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Speaker 2: You think about some of the advancers with AI overall,

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Speaker 2: but not great for in Nvidia because they've obviously built

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Speaker 2: a business about selling these very very speedy chips and

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Speaker 2: with that stock having become the biggest in the market,

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Speaker 2: and having had a cracking run these last two years,

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Speaker 2: it took a bath, as did anything in that semiconductor space,

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Speaker 2: so a bit of a recovery today. But yeah, definitely

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Speaker 2: interesting what you're seeing out there.

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Speaker 1: So what have we learned about in video? Are they

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Speaker 1: gouging the market and ripping us off or they just

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Speaker 1: don't know what they're doing compared to the Chinese when

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Speaker 1: it comes to making stuff.

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Speaker 2: Now, I don't think it's that. I think it's that

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Speaker 2: the AI models. If these Chinese ones are everything they

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Speaker 2: claim to be, they will be able to run on

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Speaker 2: less powerful chips and obviously within video, which remember it

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Speaker 2: was up two hundred and forty twenty twenty three, then

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Speaker 2: it was up another one hundred and seventy in twenty

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Speaker 2: twenty four, so it's been a stellar run, and that

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Speaker 2: share price is baking in a huge amount of growth

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Speaker 2: on the assumption that everyone will need to buy these

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Speaker 2: really grunty chips to make all this new AI stuff work.

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Speaker 2: If that's not the case and his AI that can

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Speaker 2: run on slower chips and it's more efficient, then that

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Speaker 2: growth comes into question, which means the share price is

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Speaker 2: potentially a little overcooked.

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Speaker 1: So how much of that? So it's a two part question.

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Speaker 1: How much of the Nvidio's story in general is based

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Speaker 1: on just sheer hypeer noise, kind of like Tesla stock

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Speaker 1: versus when you look at Deep Seek yesterday it's all

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Speaker 1: pro Chinese. It doesn't work that well anyway. It's a

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Speaker 1: bit basic. So what are we looking at? Are we

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Speaker 1: looking at the possibility or are we looking at reality?

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Speaker 2: I think that's one of the questions that we don't

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Speaker 2: know the answer to just yet. To be honest, the

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Speaker 2: Deep Seak stuff it does look hugely exciting, and some

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Speaker 2: of the independent tests also support what they're telling us,

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Speaker 2: But it was a bit of a knee jerk reaction,

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Speaker 2: and I think you know in Video is not going

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Speaker 2: to become Beta Max overnight, is it. They've still got

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Speaker 2: a very strong business, Their products are exceptional, and I

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Speaker 2: think there's still as a real need for them. It's

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Speaker 2: maybe just become a little bit more vulnerable because of

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Speaker 2: the shaer strength of its share price performance over the

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Speaker 2: last year or two. Time will Tell.

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Speaker 1: Always a pleasure, make appreciate it. Mark Listener, Craig's Investment

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Speaker 1: Partners directed

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Speaker 2: For more from the Mic Asking Breakfast listen live to

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Speaker 2: News Talks at B from six am weekdays, or follow

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