Nvidia: Why I Am Doubling Down On The DeepSeek Selloff
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.
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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