AI Chips Update - DeepSeek Threatens Nvidia's Upside

Nvidia's stock has plummeted, wiping out around $589 billion in market value, following the emergence of DeepSeek, a Chinese company that developed a cutting-edge AI model with significantly lower hardware costs. DeepSeek's R1 model was built in just two months on a budget of less than $6 million, sparking investor concerns about the potential decline in demand for Nvidia's premium chips. The broader tech sector, including Microsoft, Alphabet, and Broadcom, also saw declines.

• NVIDIA (NasdaqGS:NVDA) last closed at $118.42 down 17%.

In other market news, Rockchip Electronics (SHSE:603893) was a notable mover up 4.6% and finishing the session at CN¥164.50, near its 52-week high. Meanwhile, Credo Technology Group Holding (NasdaqGS:CRDO) trailed, down 30.9% to end trading at $55.60.

Best AI Chip Stocks

• QUALCOMM (NasdaqGS:QCOM) closed at $171.18 down 0.5%.
• Intel (NasdaqGS:INTC) ended the day at $20.29 down 2.6%.
• Advanced Micro Devices (NasdaqGS:AMD) closed at $115.01 down 6.4%, not far from its 52-week low.

Summing It All Up

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