Nvidia stock crash: How a Brooklyn-based blogger fueled the AI giant’s $600 bn market collapse; Here’s what report says

A Brooklyn-based social media blogger, Jeffrey Emanuel, on January 25, 2025, wrote a nearly 12,000-word blog post making a case for shorting one of the top chipmaking AI companies in the world, Nvidia Corp., reported the news portal MarketWatch.

According to the news report, the blog post cited reasons like changing tides in the world of artificial intelligence (AI), including the launch of the Chinese AI platform DeepSeek. Emanuel shared his thesis with the Value Investors Club website and posted it on Reddit, platform X, and other social media platforms. 

How did the blog go viral?

Initially, his blog started with 35 people reading the thesis, but the next day after his post, Emanuel saw around 1,500 people reading in real-time. Well-known venture capitalists and corporate professionals like Chamath Palihapitiya, Naval Ravikant, Jared Friedman, and Morgan Brown shared the blogger’s post with their millions of followers.

The post on January 25 has received half a million views from people on the social media platform X. 

In an interview with the news portal, Emanuel said that the inflow of user traffic crashed his website at one point, and then people started sharing an archive link, which his website analytics tool could not track. The report also mentioned that by the end of the night, the most concurrent readers were from San Jose, California, where Nvidia’s corporate headquarters is located.

Emanuel’s take on Nvidia shook Silicon Valley solely because he claimed that the Big Tech companies in the US were allegedly misleading the people and were in no way near the smartness or efficiency levels that Wall Street predicted them to be.

The blogger also cited that the Chinese AI platform DeepSeek did in a much cheaper way what big tech companies like Nvidia do, spending high amounts on data and advanced computing resources. 

Nvidia’s stock collapse

As Wall Street re-opened on Monday after the weekend break, Nvidia Corp. stock tanked 12.5 per cent at the market open and continued its fall, wiping almost $600 million from the company’s market capitalisation, according to multiple media reports.

The news report also cited Bloomberg columnist Matt Levine, who claimed that Emanuel’s post was an “important catalyst” for Nvidia’s stock market collapse on January 27, 2025.

After the collapse, Emanuel spent the rest of the week speaking to hedge funds, who paid him $1,000 per hour to speak on the phone and share his take on Nvidia and artificial intelligence, as per the report.

“I’m so exhausted, I’m losing my voice practically,” Emanuel told the news protal. “It’s been the most surreal experience of my life,” he said. 

Who is Jeffrey Emanuel?

Jeffrey Emanuel, the author of the blog post that allegedly sparked the debate about AI firms in the US and tanked Nvidia’s stock on Wall Street. He published the report — “The Short Case for Nvidia Stock.”

Emanuel has a Bachelor of Arts in Mathematics from Reed College in Portland, Oregon, United States. He previously worked as an Analyst at Millennium, an investment management firm, and as a Senior Analyst at Balyasny Asset Management in New York before founding his own firm, Pastel Network.

The 42-year-old analyst told the news portal that he had been obsessed with neural networks since 1998 and was an early adopter of crypto and AI. In 2021, he started his company Pastel Network, which is a blockchain company that provides decentralized storage, AI solutions and other services for Web3 developers.