Nassim Taleb, author of The Black Swan, warns that Nvidia’s historic 17% stock collapse, erasing $589 billion in market value, signals broader economic fragility and potential market turmoil ahead. The drop, triggered by DeepSeek’s development of low-cost AI technology, raised doubts about massive investments in AI and the tech sector.
Taleb cautioned that the economy’s dependence on a few tech giants, particularly Nvidia, has created a fragile wealth structure. He likened the situation to past collapses and warned of potentially larger market corrections, emphasizing the need for realistic adjustments in expectations.
The Black Swan’ author warns future selloffs could be 2-3 times worse than the DeepSeek shock as it reveals how fragile the economy is
Feb 02, 2025
Article from Fortune by Jason Ma
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