Nvidia Set to Dominate as Wall Street Analysts Predict DeepSeek Windfall

"Nvidia Poised for Success with DeepSeek Gains, Say Analysts"

Nvidia's stock faced losses post-earnings but analysts remain optimistic due to strong AI demand and potential benefits from competition with DeepSeek.

Rachel Patel3 hours agoLast Update : 3 hours ago

Why Wall Street Analysts Say Nvidia Could Be a DeepSeek 'Beneficiary’

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Nvidia’s stock has faced significant losses this week, nearing January lows following a decline driven by concerns over competition from the Chinese startup DeepSeek. Despite this downturn, analysts maintain a positive outlook on Nvidia due to strong demand for AI technologies, as expressed during the company’s recent earnings call.

5 Key Takeaways

Nvidia's stock near January lows post-earnings
Analysts remain bullish on AI demand
DeepSeek's emergence raises competition concerns
CEO highlights accelerating AI inference demand
Major firms increasing AI capital expenditures

Fast Answer: Nvidia’s stock has dropped near January lows due to competition from DeepSeek, but analysts remain optimistic about the company’s growth potential driven by AI demand.

Nvidia’s stock (NVDA) has struggled in 2025, with a recent post-earnings drop pushing shares close to January lows after a selloff linked to DeepSeek’s market entry. The stock fell over 8% on Thursday, leaving it approximately 7% lower for both the week and the year. Despite these challenges, analysts express confidence in Nvidia’s future, citing robust demand for AI technologies.

Key points from analysts include:

DeepSeek’s AI model claims to match American competitors at lower costs.
Nvidia’s CEO Jensen Huang highlighted accelerating demand for AI inference during the earnings call.
Several analysts believe Nvidia could benefit from increased competition as it pushes innovation in AI.

Huang noted that DeepSeek has sparked global interest in AI, suggesting that the need for advanced computing power will grow alongside the sophistication of AI applications. Analysts from firms like Citi and JPMorgan expressed reassurance after Huang’s comments, while Wedbush analysts believe Nvidia will ultimately benefit from DeepSeek’s presence in the market. Furthermore, Bank of America analysts pointed out that competition from Chinese firms may compel American companies to enhance their AI initiatives rather than reduce spending.

Notice: Canadian investors should be aware of the implications of international competition on tech stocks, particularly in the rapidly evolving AI sector.

In summary, while Nvidia’s stock has faced recent declines due to competitive pressures, analysts remain optimistic about the company’s growth prospects driven by increasing AI demand and innovations stemming from emerging competitors like DeepSeek.