I don't know if you've heard by now, but today's dip is mainly because DeepSeek, a Chinese artificial intelligence company has developed an open-source artificial intelligence model that some say works better than ChatGPT and other US AIs, and more importantly, does it for a fraction of the cost. This comes shortly after the US announced a $500B investment in AI.
The tech bubble has been behind the success of Nvidia, the world's most profitable company until MicroStrategy came into play. These companies, many of which have AI projects, have caused a huge demand for hardware that with the success of DeepSeek is now in doubt as to whether it will continue to be needed.
As a result, Nvidia is currently down 17% in today's session, and the Nasdaq is down 3.32%. As you may have noticed it has affected the markets in general and also bitcoin and cryptocurrencies which are also trading down today.
Here is an article on the subject: Why Is DeepSeek Sinking Nvidia Stock?
What do you think about it?
The tech bubble has been behind the success of Nvidia, the world's most profitable company until MicroStrategy came into play. These companies, many of which have AI projects, have caused a huge demand for hardware that with the success of DeepSeek is now in doubt as to whether it will continue to be needed.
As a result, Nvidia is currently down 17% in today's session, and the Nasdaq is down 3.32%. As you may have noticed it has affected the markets in general and also bitcoin and cryptocurrencies which are also trading down today.
Here is an article on the subject: Why Is DeepSeek Sinking Nvidia Stock?
What do you think about it?
China has long been ahead of the AI game. Ever since Joe Biden became President of the United States, the country has been taking one step backwards. Not anymore. President Trump recently approved a billion USD funding for AI development. The project called "Stargate", is composed of several tech companies (one of them is OpenAI) aimed to boost the development of AI within the US. If successful, it could position the country as the leading force of the AI industry. America First, right? Otherwise, you can say "bye-bye" to US tech supremacy for good.
As far as stock prices go, I'd say it's a lucky guess. Maybe, just maybe, Nvidia's stock market price will be able to bounce back to its original levels. Assuming the company comes up with something that will "blow" this DeepSeek hype out of the water. The future is unpredictable, so I can only hope for the best.
