Nvidia Under Pressure After Deepseek Launch
NVIDIA Corp's stock has plummeted amid concerns over the impact of a new AI LLM model from Chinese startup DeepSeek, with Jim Cramer stating that the company is "in a jam" if it doesn't adapt to changing market conditions. The lack of data and specifics on the DeepSeek model's implications on US tech stocks has left investors uncertain, and Cramer warned of potential buyer's remorse among investors who may have overpaid for NVIDIA shares. As Cramer himself acknowledges, much remains unknown about the effects of the DeepSeek launch on the AI chip industry.
- This sell-off highlights the vulnerability of large-cap tech companies to unexpected events in the global tech landscape, which can lead to significant losses if not managed properly.
- Will NVIDIA's focus on software and its expertise in high-performance computing be enough to mitigate the impact of this new model, or will it need to undergo a more fundamental transformation?