Nvidia stock begins to recover after DeepSeek AI frenzy prompted near $600 billion loss
Published On Jan 28, 2025, 1:07 PM
Nvidia's stock price has experienced a significant recovery after suffering a nearly $600 billion loss following concerns about competition from a new AI model by Chinese startup DeepSeek. This decrease in market value was unprecedented and raised fears that Nvidia's high GPU prices might decline due to reduced demand for AI chips. However, analysts remain skeptical about DeepSeek's claims of low operational costs, suggesting that the competitive landscape for AI remains strong and could lead to continued growth in AI spending.
Stock Forecasts
NVDA
Positive
Despite recent volatility and concerns over competition, Nvidia's fundamentals and continued strong demand for AI technology support a positive outlook. Analysts are skeptical about DeepSeek's cost efficiency, suggesting that Nvidia's market position remains strong.
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