Nvidia Reels After DeepSeek’s A.I. Breakthrough
Published On Jan 27, 2025, 3:22 PM
Nvidia has been a leading supplier of AI chips, but recently faced a significant downturn after a small Chinese company, DeepSeek, demonstrated the ability to train advanced AI systems with far fewer Nvidia chips than previously required. This development has caused a major market reaction, leading to Nvidia's shares dropping by 17% and a loss of approximately $600 billion in market value. This shift in the AI chip landscape raises questions about Nvidia's future demand as companies may reconsider their spending on its technology.
Stock Forecasts
NVDA
Negative
DeepSeek's technology advancement indicates that the dependency on Nvidia chips may weaken, potentially leading to reduced sales and revenue for Nvidia in the future. The market's immediate reaction suggests a bearish outlook on Nvidia stocks as investors reassess growth prospects in light of competition.
Related News
DeepSeek: Is China's AI tool as good as it seems?
Jan 27, 2025, 3:11 PM
The artificial intelligence (AI) tool has shocked US markets after bursting onto the scene.
What is DeepSeek and why has it caused tech stocks to drop?
Jan 27, 2025, 2:07 PM
The Chinese company is making a major splash in AI with the release of its chatbot app in the US.
What is Chinese AI startup DeepSeek?
Jan 27, 2025, 10:40 AM
The new AI assistant released by Chinese startup DeepSeek has rattled the U.S. technology sector after it reportedly developed a model on par with leading U.S. peers at a lower cost.