Shares of Nvidia (NVDA 3.28%) suffered a double-digit decline in January, primarily due to the threat from Chinese artificial intelligence (AI) start-up DeepSeek.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
NVIDIA Corporation NVDA stock has tumbled 21% over the past month, largely due to concerns over Chinese AI startup DeepSeek's breakthrough in developing a competitive AI model at a lower cost. The sell-off was particularly brutal on Jan. 27 when NVDA plunged 17% in a single day, erasing nearly $600 billion in market value on fears that DeepSeek's innovation could reduce demand for NVIDIA's high-end graphics processing units (GPUs).
A Wall Street analyst sees more upside for Nvidia (NASDAQ: NVDA) stock despite the equity facing uncertainty amid escalating trade tensions between the United States and China.
Nvidia Corporation's stock plunged 17% after news of DeepSeek's cost-efficient AI model, raising questions about the AI CAPEX spending and valuation of US tech firms. Despite the market's reaction, I remain bullish on Nvidia, citing its technological edge and aggressive product cycles as key advantages. DeepSeek's claims may be overstated, and Nvidia's long-term growth prospects remain strong, with expected revenue growth and high net margins.
Perhaps no stock exemplified the past year's artificial intelligence (AI) frenzy more than Nvidia (NVDA -2.84%). The semiconductor chipmaker's business benefited as tech companies spent billions of dollars to buy its AI offerings.
Nvidia was gaining early Tuesday as the threat of tariffs disrupting the chip sector appeared to fade.
Nvidia (NVDA -2.84%) stock soared 171% last year for the best performance in the Dow Jones Industrial Average, which it recently joined. The year was fantastic for the artificial intelligence (AI) chip giant.
One might think that artificial intelligence (AI) chip king Nvidia (NVDA -2.84%) might not be so pleased with the Chinese company DeepSeek, considering that news of DeepSeek's achievement in the AI space led to an intense single-day sell-off that erased roughly $600 billion of Nvidia's market cap on Jan. 27.
Nvidia Corporation's recent stock dip is driven by the DeepSeek saga and tariff concerns, but these risks are overstated. The Jevons paradox and CUDA software ensure Nvidia's growth and moat in the AI industry remain strong. Tariff impacts are likely manageable, with Nvidia able to pass costs to customers, minimizing margin effects.
Nvidia (NVDA) shares fell Monday after the Trump administration said over the weekend it would impose tariffs on major trading partners, adding to the stock's steep losses last week that were fueled by concerns related to Chinese startup DeepSeek's low-cost AI model.
The artificial intelligence (AI) revolution is moving at lightning speed, and one of the biggest stories from last week underscores just how critical the technology has become—not just for Silicon Valley, but for America's national security and global competitiveness.