NVIDIA’s stock is facing renewed pressure as it declines 4.5% on January 29, 2025, following a previous rally. Investors are scrutinizing the implications of DeepSeek’s AI model on NVIDIA’s market position, particularly after a significant 17% drop earlier in the week.
- NVIDIA stock down 4.5% after Tuesday's rally
- DeepSeek's AI model raises investor concerns
- Analysts debate DeepSeek's impact on NVIDIA
- AWS exploring DeepSeek for cost efficiency
- Microsoft may reconsider Blackwell program
- AI becoming more accessible and affordable
Market analysts are divided on the potential impact of DeepSeek, with some dismissing it as hype while others express concern over its cost-effectiveness compared to NVIDIA’s offerings.
NVIDIA’s recent stock fluctuations have been influenced by the introduction of DeepSeek’s AI model, which is reportedly capable of operating efficiently on lower-grade GPUs. This development has prompted major players, including Amazon’s AWS, to explore its potential. Analysts suggest that if DeepSeek can deliver comparable performance at a fraction of the cost of NVIDIA’s chips, it could disrupt NVIDIA’s market dominance.
Key points regarding NVIDIA’s current situation include:
- NVIDIA shares dropped 4.5% on January 29, 2025, after a 17% decline earlier in the week.
- DeepSeek’s AI model is noted for its cost efficiency and capability to match leading AI models.
- Amazon’s AWS is actively considering the DeepSeek model for deployment on its EC2 platform.
Analyst KC Rajkumar has raised questions about the future of NVIDIA’s Blackwell program, suggesting that its viability may be threatened by DeepSeek’s advancements. As AI technology evolves, the accessibility and affordability of AI solutions are likely to change, potentially reshaping strategic plans for companies reliant on NVIDIA’s technology.
The ongoing assessment of DeepSeek’s capabilities and its implications for NVIDIA highlights the competitive nature of the AI chip industry. As companies adapt to new technologies, the landscape may shift significantly, affecting both market shares and pricing strategies.
