Stock Movers: DeepSeek Uses Banned Nvidia Chips, Cracker Barrel Slides, GameStop Falls

DeepSeek and Nvidia Chip Controversy

• 💡 A report indicates that Chinese AI startup DeepSeek has been developing its next major AI model using Nvidia's Blackwell chips, which are banned from export to China.
• ⚠️ The chips are reportedly sent to data centers in countries allowed to purchase them, then dismantled and imported into China in pieces, a practice described as controversial.
• 📈 Despite export bans, companies like ByteDance and Alibaba are reportedly looking to order Nvidia's H200 chips, awaiting China's approval.

Cracker Barrel's Financial Struggles

• 📉 Cracker Barrel shares dropped significantly due to weaker-than-expected first-quarter sales and a cut to annual guidance.
• 🚶 Foot traffic declined by 7.3% in the quarter, with a further decline so far in the current period.
• 🎯 In response, Cracker Barrel plans to cut costs, aiming for $20-25 million in savings, and is adjusting its marketing strategy to re-engage core customers by focusing on NASCAR, college football, and country music.

GameStop's Revenue Decline

• 📉 GameStop shares slid after reporting a nearly 5% year-over-year decline in net sales for the third quarter.
• 📦 Sales across hardware, accessories, and software all declined.
• 💎 The only bright spot was collectibles, which saw a 50% increase in sales.
• 💰 GameStop's significant holdings in Bitcoin, valued at approximately $519 million at the end of the third quarter, were also noted.