How a Brooklyn Blogger Viral Post Wiped Out $600 Billion from NVIDIA Market Cap
In a dramatic turn of events, Jeffrey Emanuel, a Brooklyn-based social media blogger and former hedge fund analyst, sent shockwaves through Wall Street with a viral 12,000-word blog post making a case for shorting NVIDIA Corporation (NASDAQ: NVDA). The post, published on January 25, 2025, gained momentum overnight, eventually triggering a 12.5% stock plunge and wiping out $600 billion from the AI giant’s market capitalization.
The Blog Post That Shook Silicon Valley
Emanuel’s deep-dive analysis, titled “The Short Case for Nvidia Stock,” outlined the potential downfall of NVIDIA, citing shifts in AI dominance and the emergence of China’s DeepSeek AI as a formidable competitor. His report criticized Big Tech’s misleading AI hype, arguing that companies like NVIDIA were burning through billions in computing resources and data acquisition while DeepSeek achieved similar results at a fraction of the cost.
Initially, only 35 people read the post. But within 24 hours, that number exploded to 1,500 real-time readers as influential investors like Chamath Palihapitiya, Naval Ravikant, and Jared Friedman shared it on social media. His post on platform X (formerly Twitter) racked up over 500,000 views, while his website traffic soared—even crashing the site at one point due to the overwhelming demand.
How DeepSeek AI Sparked an AI Stock Selloff
One of Emanuel’s boldest claims was that DeepSeek AI was proving to be a game-changer in artificial intelligence, potentially disrupting NVIDIA’s dominance in the AI hardware space. His argument suggested that companies investing heavily in NVIDIA’s GPUs and AI chips might soon reconsider their spending in favor of cost-effective alternatives emerging from China.
NVIDIA’s Stock Plummets – Wall Street Reacts
When the markets reopened on Monday, January 27, 2025, NVIDIA’s stock collapsed by 12.5% at the opening bell, marking one of its worst trading days in years. According to Bloomberg columnist Matt Levine, Emanuel’s post was an “important catalyst” for the selloff, as hedge funds and retail investors scrambled to reassess NVIDIA’s valuation.
With his sudden rise to financial fame, hedge funds began reaching out, offering Emanuel $1,000 per hour for consultations on his AI and tech insights. “I’m so exhausted, I’m losing my voice practically,” Emanuel said in an interview. “It’s been the most surreal experience of my life.”
Who Is Jeffrey Emanuel? The Blogger Who Disrupted Wall Street
At 42, Jeffrey Emanuel is no ordinary blogger. Armed with a Mathematics degree from Reed College, he previously worked as an analyst at Millennium Management and Balyasny Asset Management—two major hedge funds. In 2021, he founded Pastel Network, a blockchain and AI startup that focuses on decentralized storage and Web3 solutions.
His expertise in neural networks, AI, and crypto dates back to 1998, making him one of the early adopters in the space. With his viral blog post shaking the foundations of the AI investment world, Emanuel has cemented himself as one of the most influential voices in tech finance today.
📉 Was This the Beginning of an AI Market Reset? Stay tuned as the AI industry—and NVIDIA—navigates the aftermath of this stunning market upheaval.
