Will DeepSeek’s Artificial Intelligence Model Destroy Nvidia’s Valuation?

From Nasdaq: 2025-02-07 17:03:00

DeepSeek’s AI model may have cost far more than the reported $6 million, possibly exceeding $500 million in hardware costs. This raises concerns about the accuracy of the company’s financial statements and the impact on the tech sector.

Nvidia’s stock has declined due to DeepSeek’s AI revelations, sparking questions about the company’s future. With tariffs affecting the economy, companies may reassess AI investments, potentially impacting Nvidia’s growth and stock value.

Despite the recent stock decline, Nvidia remains an attractive investment with a forward P/E ratio of 28. Investors considering a long-term strategy could benefit from the company’s strong market position and reduced valuation.

While Nvidia wasn’t among the 10 best stocks identified by the Motley Fool, it still offers potential for growth. Stock Advisor service has historically outperformed the S&P 500, making Nvidia a compelling option for investors seeking long-term returns.



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