Recently, there was a lot of panic in the market due to a new player, DeepSeek. Jim Cramer from CNBC shared his thoughts on how this could impact Nvidia and other tech companies. He mentioned that the full impact of DeepSeek isn’t clear yet and warned investors against making impulsive decisions.
Cramer expressed that during times of uncertainty, it’s wise to hold off on drastic actions. “If you feel the urge to sell, try waiting. You can always sell when the market bounces back,” he suggested.
On Tuesday, stocks bounced back after Nvidia experienced a dramatic loss, dropping nearly $600 billion in a single day. This was a shocking turn after news that DeepSeek has developed a new AI model. Investors worried this could limit Nvidia’s sales, as companies might not need to purchase as many of its chips anymore. However, despite the earlier plunge, Nvidia’s stock rose by nearly 9% by the end of the day.
Cramer pointed out that while DeepSeek’s technology might allow companies to do more with less, it’s unlikely that DeepSeek can match Nvidia in every area. He highlighted specialized tasks, like creating advanced robots or self-driving cars, which might still require Nvidia’s unique technology. He also raised concerns about whether the data processed by DeepSeek would remain secure.
The uncertainty surrounding DeepSeek also left Cramer questioning how surprise the news was for major tech leaders, like Mark Zuckerberg from Meta, Larry Ellison from Oracle, and Elon Musk from Tesla. “Do you think these big names were completely in the dark about DeepSeek?” he asked, suggesting they likely had some knowledge of the developments.
As of now, Nvidia has not released any comments on the situation, and DeepSeek has yet to respond to inquiries. In a volatile market, it’s clear that patience and careful analysis remain crucial for investors.
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Jim Cramer,Stock markets,Investment strategy,Business,Markets,NVIDIA Corp,Meta Platforms Inc,Oracle Corp,Tesla Inc,business news
