From Nasdaq: 2025-02-17 04:00:00

Nvidia stock has dropped 12% from its peak after concerns over DeepSeek’s AI model. DeepSeek claims to have achieved high competitiveness with minimal computing power, sparking fears of reduced demand for Nvidia’s GPUs. However, Google’s CEO reassured investors of Nvidia’s importance in data center chips, easing worries. Nvidia gears up for record GPU sales, with an expected $128.6 billion revenue for fiscal 2025 and a potential $196 billion for 2026.

DeepSeek’s innovative techniques using older Nvidia GPUs and distillation have raised concerns about reduced demand for high-end chips. OpenAI accuses DeepSeek of using its models for training, accelerating the process with less compute power. Despite fears of a chip demand collapse, Nvidia anticipates strong sales and revenue growth.

Alphabet’s CEO highlighted the shift in computing power towards inference over training, benefiting newer reasoning models. The company plans to invest $75 billion in data center infrastructure and chips, indicating sustained demand for Nvidia’s GPUs. Investors are urged to see the recent stock dip as a potential buying opportunity given Nvidia’s solid market position and growth prospects.



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