Gavin Baker of Atreides Management estimates DeepSeek earns $38 in inference revenue per GPU hour off-peak, or $100 billion per gigawatt a year, about 2.5x the roughly $40 billion cost of Nvidia hardware per gigawatt. Short seller Jim Chanos puts SpaceX's AI revenue at about a fifth of that rate, below $20M per MW ($19.5M), which he says would still cover Nvidia hardware in about two years. After chip stocks' longest losing streak since 2008, Nvidia trades at 18x forward earnings versus a three-year average of 30x. The author argues Nvidia's customers can afford its prices, but notes DeepSeek is one lab and Nvidia's report next month will be a further test.
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/23/2026 | 704.39 |
| Change that session | -0.01% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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