Nvidia: Why I Am Doubling Down On The DeepSeek Selloff

On the Pulse
13.64K Followers
(10min)

Summary

  • Nvidia Corporation's stock dropped 17% due to DeepSeek's AI model, but this is a buying opportunity given Nvidia's strong sales and AI GPU demand.
  • DeepSeek's cheaper AI model caused market fear, but Nvidia's advanced chips remain essential for U.S. companies, ensuring continued high demand.
  • Nvidia's sales surged 430% last year, and despite DeepSeek, its data center business and AI GPU demand will drive future growth.
  • Nvidia's profit multiple contraction is an overreaction; NVDA investors should capitalize on the current low price, as Nvidia remains a market leader.

Nvidia Corporation building in Taipei, Taiwan.

BING-JHEN HONG

The AI and semiconductor market has been thrown into turmoil this week by revelations made by Chinese artificial intelligence startup DeepSeek (DEEPSEEK) that is utilizing open-source technology to run large-language models.

The stock price of Nvidia Corporation (

This article was written by

13.64K Followers
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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