Chinese AI start-up DeepSeek releases model similar to ChatGPT, causing Nvidia stock to plummet.

From Nasdaq: 2025-02-02 15:00:00

Chinese AI start-up DeepSeek has caused a stir in the financial world by releasing a model similar to ChatGPT, trained on older Nvidia chipware. This news has caused Nvidia’s stock to plummet, resulting in a loss of $600 billion in market capitalization. Despite the drop, Nvidia’s forward P/E ratio remains at 30.1, suggesting analysts expect earnings to double. With questions about AI infrastructure demand arising, analysts may revise their projections for Nvidia, potentially impacting the stock’s value. Investors should consider industry trends before expecting another doubling of Nvidia’s value in 2025.



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