#Semicondutor Stocks Review $SOXX - Investors Chasing Their Tails In AI $NVDA $PLTR $BABA

Semis Review

Trading noise, the random movement of price over the short term, does not control trends, cycles, and profits. The majority, an emotionally driven group focused solely on price, often interprets it as meaningful information. This leads to confusion, frustration, missed opportunities, and leaves the majority as the bag holders of trend transitions. The Evolution of the Trade helps investors stand separate from the majority.

The Semiconductor stocks’ overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.

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Investors Chasing Their Tails in AI

Social media and the Internet excel at making investors chase after-the-fact justifications (See Click to Read). It’s a bewildering dance that has retail investors chasing their tails instead of following the invisible hand. The ongoing debate between OpenAI and DeepSeek distracts the majority from the bigger picture. As Palantir has explained numerous times to investors, artificial intelligence is a commodity business. Commodity businesses do not command high valuations, regardless of how many times Jim Cramer defends Nvidia’s ($NVDA) business model, 😂. DeepSeek’s introduction on Friday was a rude awakening for many, revealing that real competition is inherently deflationary.

Click to Read 01/28/25

Many of social media’s mouthpieces will prevent the majority from adapting to real trends. Below is a short list of the pro-Nvidia and OpenAI commentary will keep the majority out of the real trends for as long as possible:

Have you used the now famous, legendary Sputnik? Have you thought about whether it can power the omniverse? How Jensen has a $3000 version and it looks like it’s being bought by people who could easily use Chinese tech?

— Jim Cramer (@jimcramer) January 28, 2025

I fully expect our inferiority complex and a belief that Nvidia was all smoke and mirrors, will cause people to hit the bid, Nvidia and all the others. They have to, they fear “sputnik.” Yes, let’s politicize the whole thing

— Jim Cramer (@jimcramer) January 28, 2025

Just fyi, @deepseek_ai collects your IP, keystroke patterns, device info, etc etc, and stores it in China, where all that data is vulnerable to arbitrary requisition from the 🇨🇳 State.

From their own privacy policy: pic.twitter.com/wueJokHcn3

— Luke de Pulford (@lukedepulford) January 27, 2025

DeepSeek claims they spent $5.5 million

if they’re using 50,000 Nvidia H100 GPU

that would mean the cost is over $1.5 BILLION

that means this sell off is unwarranted

continue the bull market please

— borovik (@3orovik) January 27, 2025

A few days later, Alibaba, often likened to the Amazon of China, announced that its newly released AI surpasses DeepSeek in capabilities.

Click to Read 01/29/25

Alibaba’s announcement support the argument that AI and AI chips behind it are on track to becoming a commodity-like industry with much smaller profit margins.

Where do we go from here?

Follow me on ð• or Facebook for further discussion.

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The Matrix provides market-driven trend, cycles, and intermarket analysis.