Here's the Worst-Case Scenario for Nvidia Stock

The AI industry was rocked in recent days with the release of an open source AI model from Chinese start-up DeepSeek that can compete with the best AI models from U.S. companies despite purportedly costing just $6 million to train. While it's possible the claims about costs are exaggerated or flat-out untrue, the DeepSeek model appears to be the real deal.While cheap, powerful AI models are a great thing for companies looking to deploy AI, it's potentially terrible news for Nvidia (NASDAQ: NVDA). The bull thesis for Nvidia, which dominates the market for powerful AI accelerators that are necessary to train the most advanced AI models, relies on the assumption that each successive generation of AI models will require more and more computational horsepower to train and run.DeepSeek's breakthrough raises some serious questions. This uncertainty led to an epic plunge for Nvidia stock on Monday that wiped out hundreds of billions of dollars in market value.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool