Billionaire hedge fund manager Steve Cohen considers the recent market turbulence surrounding Nvidia to be exaggerated and blames misinformation for the massive price drop. The founder of Point72 argued that the advances of Chinese AI start-up DeepSeek are a positive indicator for the development towards artificial superintelligence.
What we saw at DeepSeek is actually bullish because it accelerates the development towards artificial superintelligence – and it's coming faster than many think," Cohen said at the Global Alts Conference in Miami.
His hedge fund Point72 recently launched a new trading strategy specifically targeting AI-related assets. The area referred to as the Turion Fund has already raised 1.5 billion US dollars and focuses on investments in AI infrastructure, including semiconductor companies.
The drop in Nvidia's stock price by 17 percent on Monday was triggered by the announcement from DeepSeek. The Chinese start-up had introduced a new AI model that came with significantly lower development costs than the U.S. competition. However, Cohen clarified that short-term market fluctuations do not diminish the long-term significance of AI technology: "There are always moments of doubt, but many investors do not even know exactly what they own and why.
After Nvidia's slump, the stock recovered by almost 9 percent on Tuesday, as investors regained confidence in the market.
Cohen, who withdrew from the day-to-day operations of his hedge fund last year, remains the strategic head of Point72 as CEO. In addition to his involvement in the financial market, he has increasingly focused on owning the New York Mets baseball team.
