Nvidia shares rose 2.79% to $133.47 as a new report suggests DeepSeek, an AI chip development project, may benefit Nvidia rather than harm it. Market strategist James Ooi believes DeepSeek’s lower computing power needs could lead to increased AI opportunities for Nvidia and other stocks in the field.
The tech giant’s stock initially took a hit after DeepSeek’s debut but has since gained 85.53% over the past year. Investor confidence appears to be recovering, although challenges persist, such as more companies building their own chips rather than relying on Nvidia. Microsoft-backed OpenAI is working on its first custom AI chip, which could intensify competition.
Despite these concerns, Nvidia’s momentum heading into 2025 remains strong, and investors are closely monitoring the situation to see if DeepSeek drives further demand for its GPUs.
Source: https://finance.yahoo.com/news/nvidia-climbs-nearly-3-analysts-172135751.html