Nvidia Stock Crash

last updated on

Nvidia Stock Crash

What Happening To Nvidia (Nvda) Stock?

One of the major shockwaves for the Nvidia (NVDA) was DeepSeek. In fact, this Chinese AI model shook the entire Nasdaq down to its core.

To put things into perspective, Nvidia (NVDA) has lost $600 billion of its value due to the DeepSeek. The arrival of this new AI model from China has put the very existence of US AI space into question.

Nvidia (Nvda) Faces Challenges From China

One of the biggest gainers from this AI boom was Nvidia without any doubt. So, its only natural for Nvidia (NVDA) to also have the biggest correction when things go haywire. On 27th January, the shares of Nvidia (NVDA) declined by 16% which was a record on its own.

Right now, Nvidia (NVDA) is the controller of 80% of the AI chips market for enterprises. These chips are a key component of machine learning, which makes AI magic a reality. From self-driving vehicles to AI-powered chatbots, the Nvidia (NVDA) chips are seen everywhere.

Now, the company is planning to bring its chips into other products powered by AI. Including self-driving cars, robotics, AI agents, and so on.

There's no doubt that the recent crash in Nvidia (NVDA) wasn't due to a change in the fundamentals. It was just an excessive reaction by the market after the release of the DeepSeek.

The arrival of DeepSeek sent a notion that there is no need to have a lot of expensive chips. In fact, AI models can be built using way less chips.

This directly means that if others can also replicate the DeepSeek model, there wouldn't be as much need for Nvidia (NVDA) chips anymore.

All of this points to the fact that a certain degree of caution is needed when it comes to buying Nvidia (NVDA) stock. After all, we know that Nvidia (NVDA) went higher at an amazing speed & now can also crash harder!

Trending Stories