Here's What I'm Doing With My Nvidia Shares After DeepSeek's Groundbreaking Innovation

Nvidia (NASDAQ: NVDA) stock took a haircut recently after China-based startup DeepSeek announced the success of its R1 model at building open-source large language models for a fraction of the currently expected cost. Compared to the billions of dollars U.S. companies are investing to win the artificial intelligence (AI) race, DeepSeek reportedly did it for just $5.6 million. This caused Nvidia's stock to plummet by nearly 20%,However, I think that's an overreaction. Although there are some valid concerns, I think this decline represents a buying opportunity for investors. After all, DeepSeek's model was still trained on Nvidia GPUs.While the news headlines were filled with claims that DeepSeek trained its AI model for just $5.6 million, that's not a fair assessment. That figure doesn't include any hardware costs, or any of the pre-training costs that it took to arrive at that point. This is a key caveat that many investors are forgetting. Still, DeepSeek had a real efficiency breakthrough that the domestic AI hyperscalers haven't discovered yet.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool