Nvidia shares plunged 17% on Monday, resulting in a market cap loss of close to $600 billion, the biggest drop ever for a U.S. company. The selloff, which hit much of the U.S. tech sector, was sparked by concerns about increased competition from Chinese AI lab DeepSeek.
John Belton, Gabelli Funds portfolio manager and managing director for growth portfolios, says DeepSeek's AI model might be good for Nvidia and tech stocks on "Bloomberg The Close." You've got questions about AI.
Nvidia called DeepSeek's R1 model "an excellent AI advancement," despite the Chinese startup's emergence causing the chip maker's stock price to plunge 17% on Monday. The comments come after DeepSeek last week released R1, which is an open-source reasoning model that reportedly outperformed the best models from U.S. companies such as OpenAI's.
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) said on Monday that the success of Chinese AI firm DeepSeek is evidence of its chips' utility in the Chinese market. The company was forced to address investor concerns over reports that DeepSeek had achieved major advancements with minimal Nvidia hardware.
Katam Hill LLC Founder and CIO Adam Gold discusses the DeepSeek tech selloff and its implication on Nvidia. He speaks with Scarlet Fu on "Bloomberg Markets.
The tech industry has had an insatiable appetite for Nvidia's chips over the last two years. But the feast may be over sooner than many had expected.
Well, we're entering the final hour of Monday trading now, and I'm afraid the news isn't getting much better.
DeepSeek's AI models claim to match OpenAI's performance with lower costs and less advanced chips, impacting semiconductor stocks negatively. Despite DeepSeek's claims, scaling AI applications will still require advanced chips, especially given the early stages of AI adoption. Nvidia Corporation remains a compelling investment due to its leadership in the GPU market and projected significant growth in EBITDA and free cash flow.
Nvidia's stock got absolutely hammered due to the news about Chinese AI startup DeepSeek. Nvidia shares tumbled as much as 18% Monday, erasing a record $560 billion in market value.
Wedbush's Dan Ives and Laffer's Nancy Tengler, join 'Power Lunch' to discuss the DeepSeek sell-off and how to play the tech sector.
China's artificial intelligence lab DeepSeek vaporized $586 billion and counting from Nvidia‘s (NASDAQ:NVDA) market capitalization in midday trading Monday.
Nvidia Corporation faces pressure due to DeepSeek's claims of cheaper AI model training, but efficient GPU usage could boost overall AI spending. DeepSeek's R1 model claims to outperform OpenAI at a fraction of the cost, though its actual GPU usage is under scrutiny. Nvidia's stock drop presents a buying opportunity, with AI demand likely to grow despite potential margin risks.