Mark Zuckerberg's positive comments on AI chips from Nvidia and AMD ease investor worries
From Nasdaq: 2025-02-05 09:04:00
Last week, semiconductor stocks like Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Micron Technology (NASDAQ: MU) took a hit as Chinese start-up DeepSeek’s cost-effective AI training approach raised concerns about decreased demand for GPUs and data center components.
Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg’s positive comments on AI chips from Nvidia and AMD eased investor worries about the impact of DeepSeek’s innovative AI training methods.
DeepSeek, a Chinese hedge fund spin-off, has developed a cost-effective large language model (LLM) that rivals top American AI models, sparking stock market panic over potential decreased GPU demand.
Despite using older GPUs due to U.S. restrictions, DeepSeek’s software innovations and efficient algorithms have enabled training of leading AI models at a fraction of the cost, raising concerns about decreased demand for Nvidia and AMD GPUs.
Nvidia’s dominant position in AI model development has driven record revenue, with substantial growth coming from data center GPU sales, making chip demand slowdown a significant risk to its market capitalization.
AMD’s upcoming MI350 GPU and leading AI chip supply for personal computers position it as a strong competitor to Nvidia, while Micron’s HBM3E memory solutions play a critical role in high-performance data centers.
Meta Platforms’ substantial investments in AI chip development and upcoming Llama 4 model launch, coupled with Mark Zuckerberg’s comments on AI inference and reasoning, suggest continued demand for data center infrastructure despite DeepSeek’s innovations.
An investment opportunity alert for three promising companies, including Nvidia, Apple, and Netflix, highlights the potential for significant returns and encourages investors to consider taking advantage of the current market conditions.
Randi Zuckerberg, former Facebook director and sister to Meta Platforms CEO Mark Zuckerberg, has no position in mentioned stocks, with The Motley Fool disclosing positions in and recommending Advanced Micro Devices, Meta Platforms, and Nvidia.
Read more at Nasdaq: Mark Zuckerberg Just Delivered Incredible News for Nvidia, AMD, and Micron Stock Investors