The post Why DeepSeek might be the strongest Nvidia stock bull case appeared on BitcoinEthereumNews.com.

The stock market’s reaction to the release of China’s novel artificial intelligence (AI) model DeepSeek has been both bearish and violent as it saw the shares of many major players in the sector – most notably Nvidia (NASDAQ: NVDA) – swiftly plummet. Though NVDA regained some ground in recent trading and is, at press time on February 7, changing hands at $128.63, the plunge can still be felt as it is 8.20% in the red in the last 30 days and the question of when it will fully negate the 16.97% DeepSeek plunge from $142.62 to $118.42 remains open. NVDA stock 30-day price chart. Source: FInbold Still, many believe that the investors’ reaction to the novel model has not only been overblown but also entirely wrong in its direction. Why DeepSeek shocked big tech investors Specifically, traders appear to have been unnerved by the reported low costs of developing DeepSeek, as well as by the fact it could be freely replicated thanks to the creators’ decision to make it open source. Given the costs were estimated at approximately $6 million and hundreds of billions were poured into Western big tech for its AI programs, some have even taken to speculating the competitor from China could generate an ‘extinction’ event for many venture capital firms. Still, the terror unleashed by DeepSeek arguably obscured the fundamental fact that strong competition tends to lead to better outcomes and that the fact that technological breakthroughs tend to accelerate advancements, not halt them. Indeed, though their perceived monopoly might have been diminished, Western big tech firms are likely to utilize the lessons learned from DeepSeek and combine them with their vast and robust infrastructure to create significantly more sophisticated models. At the same time, the efficiency of systems can enable more people to utilize AI…

---

Filed under: News - @ February 7, 2025 10:25 am