Short seller Jim Chanos’s flag is like the biggest threat to the market in the next 6 months: “…from the left field, change people’s way of thinking” by Jim Chanos jim chanos flag DeepSeek is the biggest risk in the market for the next six months. Warning – Meta Platform (NASDAQ: META), NVIDIA (NASDAQ: NVDA)

Famous seller Jim Chanos The potential unpredictable risks and over-speculation about the U.S. market has raised alarms and weakened nearly $1 trillion in market value with the recent Deepseek crash.

what happened: In a conversation with Bloomberg on Wednesday, Chanos stressed that the biggest threat to the U.S. market will be events similar to those of the DeepSeek incident in the next six to twelve months. “The real risk will be DeepSeek that comes from the left field, which changes people’s minds,” Chanos said. “We don’t know what that is by definition.”

Chanos also expressed his concerns about over-speculation in the stock market. However, he noted that when the S&P 500 soared 27%, it has not yet reached the height of its 2021 boom. He stressed that investors need to distinguish between companies that prove their high valuation from those that do not make sense.

In addition, Chanos expressed concern about the market’s reaction to political drama, especially the tariffs proposed by President Donald Trump. He believes that taxing 10% of China will not generate substantial income and suggests that tariffs need to be greatly increased for both China and the EU.

See: Is Deepseek a Trojan horse? Kevin O’Leary calls on BS for DeepSeek’s $6 million budget, claiming they stripped 60k Nvidia chips from the black market

Why it matters: The DeepSeek incident mentioned is a hot topic in the AI ​​industry. DeepSeek, a Chinese artificial intelligence startup, developed an open source language model R1, priced under $6 million, and in several tests it outperformed its established competitors, challenging the widespread spending approach in Silicon Valley.

But DeepSeek is under scrutiny when U.S. officials began investigating whether to obtain seniority Nvidia NVDA Chips through backdoor channels may bypass U.S. sanctions.

Additionally, Piper Sandler’s research notes show that despite DeepSeek’s lead Yuan Platform Company‘ Yuan The latest camel model, it still lags behind leading AI labs like Openai and human labs for about six months.

at the same time, Don TownwickThe director of equity strategy at Conning Asset Management warns that the impact of DeepSeek could shake the U.S. market again. “If DeepSeek’s technology proves less reliable than current reliability, then the grand seven stocks could benefit.” Overall, if more and more companies will DeepSeek Successfully offering low-cost AI alternatives, Townwick will see wider corporate earnings over the long term.

These developments have sparked optimism about democratizing AI and fears that the AI ​​stock bubble will burst, causing ripples throughout the financial market.

Through shutterstock image

Disclaimer: The content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.