Tony Wang on Big Tech Sell-off, AI Spending, and CoreWeave IPO

Tech Sell-off and Market Volatility

• 📉 The NASDAQ composite experienced a 2% drop today, marking the fifth such decline this month, the highest since June 2022.
• 💡 The market is currently in a phase of trying to determine if the current downturn presents a buying opportunity.
• ⚠️ Bull markets require conviction, while bear markets demand restraint; the market is grappling with this uncertainty.

Valuations and AI's Impact

• 📊 Current valuations do not indicate capitulation, as stocks are still reacting negatively to bad news.
• 📉 Numbers have not been significantly revised downwards yet, suggesting the correction may be due to rotation, valuation adjustments, and recognition of strong prior years.
• 🚀 The AI infrastructure buildout has had significant multiplier effects across the market and economy over the past two years.

AI Spending and Market Cycles

• 💬 Concerns about an AI spending bubble are natural, but compute power remains valuable.
• 💡 DeepSeek's impact is nuanced, reducing inferencing costs while dramatically expanding the market for AI training and experimentation.
• 📈 The market is considering both the AI cycle and the broader macroeconomic cycle.

CoreWeave IPO and GPU Financing

• ✨ CoreWeave has impressed with its direct-to-bare-metal approach and lightweight software optimized for AI, claiming 20% better performance than hyperscalers.
• 💰 The company has pioneered financing backed against GPUs, enabling rapid growth.
• 🧩 The market is debating the long-term value of GPU clusters, with CoreWeave betting on extended GPU runtime.