Nvidia Stock Crashed

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Nvidia Stock Crashed

Nvidia Stock Crashed - What'S Next?

The share price of Nvidia (NVDA) has declined by more than 20% during the last few days. Typically, a decline of 10 - 20% is regarded as a correction, while a decline of more than 20% is called a crash.

The Nvidia (NVDA) share price has declined almost 23% from its recent highs. So, there's no doubt in saying that the Nvidia (NVDA) has officially crashed.

Nvidia (Nvda) Market Cap Shrinks

Around $600 million has been wiped from the market cap of Nvidia (NVDA). That's almost 3x the Shell's value and highlights the gravity of the situation.

All of this also raises the question of whether Nvidia's (NVDA) share prices were inside a bubble. If it was in a bubble, has it been deflated, or will it take more time?

Well, it all started when the Chinese company DeepSeek released its own AI model. The highlight of this was the claim that they only spent less than $6 million on the development of the AI model.

To make things more interesting, DeekSeek also used cheaper and older Nvidia chips. This has cast serious doubts on whether expensive chips and billions of dollars in investment are really needed for AI or not!

This also raises the possibility that other firms could also develop AI models for less money. While this is good for the AI industry, it is definitely not good for Nvidia (NVDA) and other chip companies.

Meanwhile, Alibaba, which is a notable company from China, has also launched a new AI model. According to them, their AI model is better than ChatGPT and DeepSeek.

There's no doubt that Nvidia (NVDA) is facing threats from many directions in the long-term. Not to mention that the growth of Nvidia (NVDA) in the past few years was not normal at all.

So, if the Nvidia (NVDA) share prices decline, it shouldn't come as a surprise. After all, what goes up can also go down, and Nvidia (NVDA) is no exception.

According to analysts, the Nvidia (NVDA) stock remains a buy, but investors should be cautious as the volatility is just too high.

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