From Nasdaq: 2025-02-08 17:45:00

Share prices of Nvidia (NASDAQ: NVDA) have dropped by 5% in 2025 due to concerns about AI spending. Chinese start-up DeepSeek claimed to train an open-source AI model for $6 million, raising doubts about the credibility of their claims and the impact on Nvidia’s stock.

Despite concerns, DeepSeek’s cost-efficient AI development could benefit Nvidia. With increasing demand for AI chips, Nvidia may see a surge in sales and market growth. This recent dip in stock price could be an opportunity for investors, given Nvidia’s strong financial performance and growth potential.

Nvidia’s robust financials show a 94% year-over-year revenue increase to $35.1 billion in Q3 2025, mainly driven by data-center revenue. The company also returned $11.2 billion to shareholders through dividends and repurchases. With revenue expected to reach $37.5 billion in Q4, Nvidia’s future looks promising.

Nvidia’s Blackwell infrastructure solution is set to maintain its dominance in AI computing, offering better performance and cost efficiency. The company is in full production mode for Blackwell systems, expecting revenue to exceed previous estimates. Enterprise AI adoption and physical AI opportunities further contribute to Nvidia’s growth potential.

Valued at 28 times forward earnings, Nvidia may seem expensive, but analysts project significant revenue and EPS growth in 2025. The company is well-positioned to benefit from global computing shifts and AI advancements, making it a compelling investment choice for the future. Consider the growth potential and sustainable competitive advantages of Nvidia before investing.



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