DeepSeek Shocked the AI Market Last Week. Here's Why Nvidia's Latest Move Should Crush the Panic.

Nvidia (NASDAQ: NVDA) is known for its dominance in artificial intelligence (AI) chips, holding about 80% of the market. The company sells the world's most expensive AI chips -- or graphics processing units (GPUs) -- but customers are willing to pay the price thanks to these products' top performance. Nvidia chief Jensen Huang has even said that, over time, Nvidia's chips are the best deal as they save on total cost of ownership.For Nvidia to keep on winning, customers must continue to flock to the company for their AI needs -- and get in on the company's latest and highest-priced chips. The tech giant, promising AI customers updated chips on an annual basis, has used innovation to keep this momentum going.But late last month, something happened that called into question Nvidia's ability to keep revenue growth soaring over the long term. Chinese startup DeepSeek announced that it had trained its R1 model in two months for less than $6 million. That compares with the billions of dollars top U.S. tech companies have spent on Nvidia AI chips. As a result, Nvidia stock sank 17% in one trading session, losing nearly $600 billion in market value.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool