Azeem Azhar

stock market valuations drop, they can spill into the real world through wealth effects or some other dynamics.

But it doesn't quite feel as overinflated as 99 because we can see the revenue flow into these businesses.

Yeah.

Well, I think that's really true.

And in fact, that is probably what we saw on Monday, right?

When this Chinese model DeepSeek, it wasn't released.

I mean, DeepSeek R1 had been around for a while.

They declared they were doing it.

weeks, if not months ago, I had written about Deep Seek back in December 23.

And in December 2024, I said, Deep Seek is a Chinese Sputnik moment for the US.

So that was before the new year, because I thought that...

A lot of these stock market valuations have embedded within them the idea that the US will have a sustained AI dominance.

And sustained AI dominance will mean the best technology turning into the best product, turning into the fastest revenue growth, dragging forward with them the supply chain.

So effectively, the demand for NVIDIA chips, ultimately AMD chips, and the manufacturing.

And that bet was so concentrated.

that, of course, any little wobble will have animal spirits running through that China shop.

Right, okay.

Okay, I hear that.

I'm going to stick on with this point because...

Here's where I think today is different to the dot-com.