Nvidia's $600 Billion Sell-Off: AI Market Disruption or Buying Opportunity?
36 Sources
[1]
Nvidia Stock Sell-off Presents A Buying Opportunity? - NVIDIA (NASDAQ:NVDA)
NVIDIA saw $600 billion in market value wiped out in a single day - the largest single drop in the company's history. The reason is anything but a mystery. A Chinese company, DeepSeek AI, released a new Large Language Model (LLM) that rivaled the performance and capabilities of big players like
[2]
If I Could Only Buy One AI Stock, This Would Be It | The Motley Fool
Despite DeepSeek's success, Nvidia remains a force to reckon with in the global AI market. Share prices of semiconductor giant Nvidia (NVDA 0.90%) are down by about 5% so far in 2025. Despite solid fundamentals, the company's stock tanked on marketwide concerns about a potential slowdown in
[3]
3 Reasons to Buy This Artificial Intelligence (AI) Stock on the Dip | The Motley Fool
The popular phrase "reports of my death are greatly exaggerated," an adaptation of a famous Mark Twain quote, is a terrific way to describe Nvidia (NVDA 1.71%) after the DeepSeek bombshell (more on this below) sank its stock more than 20%. The stock is still more than 16% off its recent high. Is
[4]
Is Nvidia Stock Still a Buy After DeepSeek's Breathtaking Innovation?
DeepSeek sent shockwaves through the AI investing world when it announced that it trained its R1 generative AI model for less than $6 million. Even more impressive is that some of its capabilities are on par with other leading generative AI models like ChatGPT and Claude. This caused many
[5]
Is Nvidia Stock a Buy? | The Motley Fool
Perhaps no stock exemplified the past year's artificial intelligence (AI) frenzy more than Nvidia (NVDA -2.84%). The semiconductor chipmaker's business benefited as tech companies spent billions of dollars to buy its AI offerings. Shares of Nvidia were up nearly 90% over the past 12 months through
[6]
Nvidia Stock: Deep Capex Analysis Shows Compute Clusters As The AI Moat (NASDAQ:NVDA)
A ~50% one-year return target positions Nvidia Corporation stock attractively, though evolving efficient training architectures may temper long-term GPU demand -- warranting ongoing vigilance for NVDA. I covered the DeepSeek (DEEPSEEK) news when it first widely disseminated in the press. However,
[7]
Nvidia Stock Investors Just Got Great News From Amazon and Google-Parent Alphabet | The Motley Fool
In January, Chinese start-up DeepSeek introduced an artificial intelligence (AI) chatbot that quickly became the most downloaded free mobile application in the U.S. Importantly, the base large language model behind the DeepSeek application allegedly cost $6 million to train and reportedly
[8]
Is Nvidia the Greatest Artificial Intelligence (AI) Stock? | The Motley Fool
Artificial intelligence (AI) has probably been the hottest investment theme on the planet over the past year. Companies involved in this high-growth area have seen their share prices climb in the triple digits and have fueled gains in the three major benchmarks -- the S&P 500, the Dow Jones
[9]
Will DeepSeek's Artificial Intelligence Model Destroy Nvidia's Valuation? | The Motley Fool
Did DeepSeek's artificial intelligence (AI) model really cost less than $6 million to make? If that's the case, it makes you wonder what big tech plans to spend tens of billions of dollars on this year, not to mention the massive $500 billion Stargate project that President Trump announced last
[10]
3 Reasons Why I'm Still Loading Up on Nvidia Shares | The Motley Fool
Nvidia's (NVDA 5.21%) stock has been beaten down over the past two weeks thanks to the release of DeepSeek's efficient generative AI model. Because DeepSeek reportedly trained its artificial intelligence (AI) model for less than $6 million, many investors are assuming that companies like Nvidia
[11]
Should You Forget Nvidia and Buy This Artificial Intelligence (AI) Stock Instead? | The Motley Fool
Today, let's examine what has happened with Nvidia and whether another stock might be the smart choice for AI investors in 2025. A good rule of thumb for investing is to always have a thesis -- a rationale for why you believe a stock will deliver value over the long term. For Nvidia, the most
[12]
Prediction: Nvidia Stock Is Going to Soar After Feb. 26 | The Motley Fool
Nvidia (NVDA 1.71%) has gotten off to a bad start on the stock market in 2025, losing more than 10% of its value as of this writing, with Chinese artificial intelligence (AI) start-up DeepSeek's launch of a low-cost but capable AI model playing a key role in the semiconductor giant's
[13]
1 Artificial Intelligence (AI) Chip Stock to Buy the Dip Right Now (Hint: It's Not Nvidia) | The Motley Fool
Over the past year, a number of semiconductor stocks have witnessed meteoric gains thanks to ongoing euphoria surrounding artificial intelligence (AI). The share prices of Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom have all risen approximately 80% over the last 12 months -- handily
[14]
2 Artificial Intelligence (AI) Stocks to Buy Like There's No Tomorrow | The Motley Fool
Investors looking for the best artificial intelligence (AI) stocks might want to look at the companies Wall Street is overlooking right now. Some tech leaders in hardware and software are experiencing strong demand for their technology but, for whatever reason, are not seeing validation yet in
[15]
3 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now
Artificial intelligence (AI) investing is still one of the prevailing themes in the markets. Investors need to have some exposure to this trend, as it has the potential to be a generation-defining technology with a similar magnitude of impact as the internet. For AI investing, my top three buys
[16]
Why Nvidia Stock Lost 11% in January
Shares of Nvidia (NVDA 1.65%) suffered a double-digit decline in January, primarily due to the threat from Chinese artificial intelligence (AI) start-up DeepSeek. AI stocks plunged on Jan. 27 as investors reacted to the new chatbot DeepSeek R1 and DeepSeek's 22-page research paper that explained
[17]
3 Top Artificial Intelligence Stocks to Buy Right Now | The Motley Fool
Artificial intelligence (AI) appears as if it could be one of the game-changing technologies of this generation. Many of the leading technology companies in the world are investing heavily in the technology, as they race to take advantage of what many are calling a once-in-a-generation opportunity
[18]
3 Top Artificial Intelligence Stocks to Buy in February | The Motley Fool
Investing in AI stocks has brought opportunity in a rapidly changing environment. The sudden appearance of DeepSeek's models, which it created with older and less advanced processors, has lowered the cost of creating powerful artificial intelligence (AI) systems. While that may democratize the
[19]
Should You Buy Nvidia Before Feb. 26? The Evidence Is Piling Up, and Here's What It Says. | The Motley Fool
Nvidia (NVDA -2.84%) stock soared 171% last year for the best performance in the Dow Jones Industrial Average, which it recently joined. The year was fantastic for the artificial intelligence (AI) chip giant. It entered this famous benchmark, reported record revenue, and readied the release of its
[20]
The "Dean of Valuation" Says Nvidia Stock Could Plunge by 31%. Here's My Contrarian Take on Why DeepSeek Could Fuel It to New Highs, Instead. | The Motley Fool
Finance professor Aswath Damodaran just slapped a $78 price target on Nvidia stock -- implying over 30% downside from current levels. Aswath Damodaran is an accomplished professor at New York University's Stern School of Business. In particular, Damodaran specializes in valuation -- having written
[21]
Should You Buy Advanced Micro Devices (AMD) Stock After Its 49% Drop? | The Motley Fool
Nvidia makes the most advanced graphics processing units (GPUs) for data centers, which are used to develop artificial intelligence (AI) models. The company has benefited from a powerful first-mover advantage, capturing the lion's share of the market and adding trillions of dollars to its market
[22]
1 Data Center Stock to Buy on the DeepSeek Dip (Hint: It's Not Nvidia) | The Motley Fool
For the last week, the financial world finally had something to talk about other than Nvidia... well, sort of. By now, you've probably heard a lot of chatter about a Chinese artificial intelligence (AI) start-up called DeepSeek. DeepSeek built a competing large language model (LLM) to OpenAI's
[23]
Palantir's CEO Just Said This About DeepSeek. Here's What It Could Mean for Nvidia Investors. | The Motley Fool
Palantir CEO Alex Karp recently shared some interesting thoughts on the DeepSeek development. Alex Karp is a PhD., technologist, and philosopher. He's also the CEO of artificial intelligence (AI) software company Palantir Technologies -- and he often explains sophisticated and complicated ideas in
[24]
2 AI Stocks to Buy Before They Soar 300% and 110%, According to Certain Wall Street Analysts | The Motley Fool
Hans Mosesmann at Rosenblatt Securities recently lowered his 12-month target price on AMD to $225 per share. But that still implies 110% upside from its current share price of $107. Here's what investors should know about these artificial intelligence stocks. Palantir specializes in data
[25]
Every Nvidia Investor Should Keep an Eye on This Number
Artificial intelligence (AI) leader Nvidia (NVDA 2.21%) had a strong 2024. During the year, analysts debated how high its data center revenue could grow as it rolled out new products. Hyperscaler customers kept increasing capital spending to build out data center compute power. But things turned on
[26]
Nvidia Stock Remains Analyst's Top Pick: 'DeepSeek Selloff Is A Buying Opportunity' - NVIDIA (NASDAQ:NVDA)
Demand for Nvidia products is strong according to the analyst. NVIDIA Corporation NVDA was one of several technology stocks hit by the emergence of Chinese AI competitor DeepSeek. An analyst sees the pullback as a buying opportunity. The NVDA Analyst: Morgan Stanley analyst Joseph Moore
[27]
Morgan Stanley says buy the DeepSeek dip in Nvidia, calls it top pick into earnings
The recent DeepSeek-fueled sell-off in technology stocks has made Nvidia shares ripe for the picking, according to Morgan Stanley. Analyst Joseph Moore reiterated Nvidia as a top pick and repeated an overweight rating on the stock in a Thursday note to clients. His $152 price target on the dominant
[28]
These 2 Stocks Are Leading the Data Center Artificial Intelligence (AI) Trend, but Are They Buys Right Now? | The Motley Fool
Data centers are among the most significant trends in artificial intelligence (AI). In the coming years, major tech companies will spend trillions erecting them in the U.S. and internationally. New massive projects are announced so often that it's tough to keep up, but I'll try. Here are some
[29]
Will AMD Be the Best Artificial Intelligence (AI) Stock of 2025? | The Motley Fool
Advanced Micro Devices(AMD -2.36%) is one of the biggest names in the computing industry but has played second-fiddle to many competitors throughout its lifetime. While it was behind Intel in PC processors for many years, it's now considered a neck-and-neck competitor. However, a bigger computing
[30]
My Top 3 Nvidia Predictions for Feb. 26 | The Motley Fool
Nvidia (NVDA 0.90%) has become one of the most-watched stocks on the planet in recent years. That's because the company has built an empire in the key growth industry of today and tomorrow: artificial intelligence (AI). The current $200 billion AI market is forecast to reach beyond $1 trillion by
[31]
Buy Now, thank yourself later: Wall Street analysts are betting big on these 2 AI stocks and predicts gains of 300% and 110%!
Wall Street analysts are seeing big potential in AI stocks Palantir Technologies and Advanced Micro Devices, with predictions of 300% and 110% upside, respectively. AI has been the biggest driver for the growth in the stock market lately and some Wall Street analysts see potential for two specific
[32]
Nvidia under spotlight after DeepSeek AI bombshell; here's the critical number that every Nvidia investor must track
Nvidia's stock dropped by 11% in 2025 after Chinese AI startup DeepSeek claimed to develop a high-performing language model for only $6 million, diverting investor interests. However, investors are suggested to pay attention to Nvidia's upcoming earnings report, especially their data centre
[33]
Nvidia stock climbs in early trade recouping DeepSeek losses
Nvidia stock rise has helped the chip maker to recoup a large chunk of its losses from the last week, when it witnessed a brutal selloff due to the Chinese start-up DeepSeek.Nvidia stock witnessed an upward trend on Friday morning as the artificial-intelligence chip maker looks forward to ending
[34]
Morgan Stanley Thinks The Demand For NVIDIA's Hopper And Blackwell Chips Remains "Solid," With DeepSeek Creating "Some Challenges" On The Margins
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. As NVIDIA's quarterly earnings draw ever closer, Wall Street analysts are churning out their takes on the GPU manufacturer's prospects with growing regularity.
[35]
Despite DeepSeek rout, BofA Securities maintains a Buy on Nvidia; here's why
BofA Securities analyst Vivek Arya maintained a bullish stance on Nvidia as he predicted sustained growth due to strong demand from major clients like Microsoft and Meta. He projected fourth-quarter revenue of $38.7 billion and adjusted EPS of $0.86.Despite Nvidia's stock dip after DeepSeek's
[36]
Prediction: Nvidia's DeepSeek AI Uncertainty Is a Buy Opportunity
Jose Najarro has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose
Share
Copy Link
Nvidia's stock plummets following claims of a breakthrough by Chinese AI startup DeepSeek, raising questions about the future of AI chip demand and Nvidia's market position.
Nvidia's Stock Plummets on DeepSeek AI Claims
Nvidia, the leading AI chip manufacturer, experienced a significant $600 billion market value drop following claims by Chinese startup DeepSeek AI about creating a large language model (LLM) for just $6 million
1
. This development sent shockwaves through the AI industry, raising questions about the future of AI chip demand and Nvidia's market position.DeepSeek's Controversial Claims
DeepSeek AI announced that it had developed an LLM rivaling the performance of major players like OpenAI, Meta, and Google, but at a fraction of the cost and using older-generation Nvidia chips
1
. However, industry experts have cast doubt on these claims, with some suggesting that DeepSeek may have used significantly more chips than disclosed, potentially violating U.S. export controls2
.Nvidia's Competitive Advantage
Despite the market's initial reaction, Nvidia maintains several key advantages:
- Technological Lead: Nvidia's decade-long dominance in gaming has given it a significant head start in AI chip technology
1
. - Infrastructure Necessity: AI requires substantial processing power and energy, which Nvidia's chips are uniquely positioned to provide
1
. - Market Growth: As AI adoption expands, the demand for high-end processing power is expected to increase
1
3
.
Financial Performance and Future Outlook
Nvidia's recent financial performance remains strong:
- Q3 FY2025 revenue soared 94% year-over-year to $35.1 billion
2
. - Data center revenue jumped 112% to $30.8 billion
2
. - The company is committed to returning value to shareholders, with $11.2 billion in dividends and share repurchases in Q3
2
.
Nvidia's next-generation Blackwell infrastructure solution is expected to maintain the company's dominance in accelerated computing, offering 2.2 times better performance and 4 times lower computing costs compared to previous generations
2
3
.Market Response and Valuation
While Nvidia's stock experienced a significant drop, many analysts view this as a potential buying opportunity:
- The stock is trading at about 28 times forward earnings, which may seem high but is justified by expected growth
2
. - Analysts project 112% revenue growth and 127% EPS growth for fiscal 2025
2
. - Nvidia's PEG ratio of 0.2 suggests the stock may be undervalued relative to its growth potential
2
.
Related Stories
Industry Impact and Future Considerations
The DeepSeek announcement has raised questions about the efficiency of AI model training and potential impacts on chip demand. However, industry leaders like Meta's Mark Zuckerberg have stated that their AI investment plans remain unchanged
4
. The U.S.-China rivalry in AI development and potential regulatory actions could also play a significant role in shaping the industry's future5
.Conclusion
While DeepSeek's claims have caused short-term market volatility, Nvidia's strong market position, technological advantages, and robust financial performance suggest that the company remains well-positioned to benefit from the ongoing AI revolution. The recent stock dip may present an attractive entry point for long-term investors who believe in the continued growth of AI technology and Nvidia's role in powering it.
References
Summarized by
Navi
[3]
[5]
Related Stories
Recent Highlights
1
OpenAI Claims AI Math Breakthrough on Navier-Stokes, Sparks Controversy Over Credit and Future of Research
Science and Research
2
Anthropic Researcher Quits, Warns Self-Improving AI Poses Existential Risk to Humanity
Policy and Regulation
3
Nvidia CEO Jensen Huang Declares AGI Has Arrived With OpenAI's GPT-6 Astra Release
Technology
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
