Nvidia Stock Faces Sharp Decline Amid AI Competition

Reported 3 days ago

Nvidia's shares fell over 13% on Monday, wiping nearly $480 billion from its market cap, following the unveiling of a competitive AI model, R1, by Chinese startup DeepSeek. This development has raised concerns among investors about the necessity of hefty AI investments from U.S. tech companies like Microsoft and Amazon, and whether demand for Nvidia's advanced GPUs could decrease. While some analysts remain skeptical about DeepSeek's capabilities without top-tier chips, others suggest it may influence a shift toward efficiency in the industry.

Source: YAHOO

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