I don't understand this take. If compute-restricted China develops algorithmic improvements to AI, they will just be integrated with the American AI data centres and will push the SOTA forward. It doesn't remove the value of American AI infrastructure investment nor the economic potential of future SOTA models able to do billions of dollars worth of work.

Market cap is just (no of shares) x (share price) and fluctuates all over in ways largely unrelated to fundamentals. Share price = whatever the idiots buying and selling that day happen to agree on and can depend as much on their mood as anything else.