Nvidia’s stock had a rough start to 2025. Recently, it dropped significantly after earnings were released, bringing its shares close to lows we saw back in January when a selloff led by DeepSeek occurred.
After falling more than 8% on Thursday, the stock showed some recovery on Friday. Still, it’s down about 7% for both the week and the year. Despite this, many analysts remain positive about Nvidia’s future, citing strong demand for AI technology.
Investor confidence seems shaky, especially since Nvidia’s stock had gained about 50% over the last year. Concerns have arisen due to DeepSeek, a new player in the AI market, claiming its models can compete with American companies at a lower cost. However, several experts believe Nvidia may actually benefit from DeepSeek’s rise and increased competition.
During a recent earnings call, CEO Jensen Huang emphasized the growing demand for AI, noting how new models are rapidly developing. He mentioned DeepSeek’s technology, which he believes has ignited excitement in the global AI community. Huang argued that this surge in innovation will likely require even more powerful computing, positioning Nvidia for continued growth.
Following Huang’s comments, analysts from Citi and JPMorgan expressed their reassurance regarding Nvidia’s future, particularly in light of DeepSeek’s impact on computing needs. Meanwhile, Wedbush analysts believe Nvidia will ultimately gain from the situation.
Bank of America analysts pointed out that competition from Chinese firms might actually prompt American companies to accelerate their AI initiatives rather than cut back. Recently, major tech companies like Meta, Microsoft, Amazon, and Alphabet announced plans to increase their spending to boost AI development.
