If China's DeepSeek AI efficiency claims are to be believed, NVIDIA (NASDAQ: NVDA) may suffer a substantial valuation reset with reduced demand for GPUs.
Shares of Nvidia (NVDA 4.67%) gained ground on Wednesday, climbing as much as 5%. As of 12:42 p.m.
The AI revolution is well underway and two companies—DeepSeek and Nvidia—stand out among those competing to lead it. Outside the financial world, the story might seem distant—but it really does have consequences for everyone.
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The server maker ramps full production of Nvidia's Blackwell-powered platform.
Stocks like SMTC, TSM, NVDA and PLAB are likely to gain from the jump in semiconductor sales.
The major tech stocks seem to be somewhat mixed in the premarket, but I am focusing on Alphabet, Nvidia, and Tesla, for differing reasons. At this point, the Google situation could be set up for value.
Nvidia (NASDAQ: NVDA) was one of the best-performing stocks of 2024. However, it has had a rough start in 2025.
DeepSeek sent shockwaves through the AI investing world when it announced that it trained its R1 generative AI model for less than $6 million. Even more impressive is that some of its capabilities are on par with other leading generative AI models like ChatGPT and Claude.
For all of its undeniable successes, Nvidia (NASDAQ: NVDA) has been suspected of being significantly overvalued in the stock market. Indeed, though the semiconductor giant recorded a substantial revenue increase in recent years, to many, the accompanying $3 trillion valuation surge in about two years appeared oversized.
Nvidia (NVDA 1.71%) has gotten off to a bad start on the stock market in 2025, losing more than 10% of its value as of this writing, with Chinese artificial intelligence (AI) start-up DeepSeek's launch of a low-cost but capable AI model playing a key role in the semiconductor giant's troubles.
The popular phrase "reports of my death are greatly exaggerated," an adaptation of a famous Mark Twain quote, is a terrific way to describe Nvidia (NVDA 1.71%) after the DeepSeek bombshell (more on this below) sank its stock more than 20%. The stock is still more than 16% off its recent high.