NVIDIA has lost its place in the exclusive club of 3 dollars, leaving Apple as the only listed company which always has this evaluation.
The decline occurs as Nvidia The stock has dropped following his latest report on gains, arousing renewed concerns about the question of whether the flea manufacturer Domination in the AI industry is starting to deal with real challenges.
After Nvidia The shares dropped by 8.5% on Thursday, the company saw its market capitalization decrease to 2.94 dollars of dollars, annihilating around $ 273 billion in value in one day. Although the stock was slightly rebounded on Friday, winning about 1%, it was not enough to restore Nvidia Previous position above the 3 dollars bar.
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This sharp decline underlines that Nvidia is not yet free from the persistent effects of Deepseek emergencea development that sent undulations to the semiconductor industry and was considerably affected Nvidia stock in recent months.
The growing influence of Deepseek, a research company and semiconductors of AI supported by China The main giants of technology have raised concerns about Nvidia Long -term dominance in the AI fleas sector.
Deepseek, who made the headlines at the end of last year, aggressively developed the high performance ia fleas which are positioned as direct competitors for Nvidia GPUS. The company, would have Supported by Alibaba, Tencent and other Chinese investors, aims to create advanced AI processing units that bypass American sanctions on semiconductor exports to China.
Therefore, The emergence of Deepseek has been seen As a potential game changer in AI and semiconductors, because it introduces a new powerful competitor into a market that Nvidia has long dominated. Investors reacted quickly when Deepseek Progress has started to circulate at the end of 2024, leading to a brief sale of technological stocks that affected the major manufacturers of American flea, including NVIDIA and AMD.
For Nvidia, It was particularly alarming given That China represents an important part of its sales of AI fleas. The company has difficulty in export restrictions imposed by the United States government, limiting its ability to sell its most advanced GPUs to Chinese companies. Deepseek Rapid Progress presents an additional challenge because it reduces China dependence at Nvidia products quite.
The fear that Deepseek could capture a large market share in China has weighed heavily Nvidia stock, contributing to its recent volatility. Analysts stressed that if Nvidia still leads terms of The performance of the AI fleas, the geopolitical landscape and the growing competition from Chinese companies could threaten its long -term growth prospects.
Even before the deep threat materializes, Nvidia had faced increasing problems of investors on several key questions, in particular:
- The potential for more strict American export controls on AI chips,, which could limit more Nvidia Ability to sell to the main international markets.
- Growing fears that AI models become more effective, reducing the need for most powerful GPUS that Nvidia specializes in production.
- Are concerned about a slowdown in investment in AI infrastructure, in particular large cloud service providers like Microsoft, Google and Amazon, which explain a large part of Nvidia income.
These concerns have led to an increase in profits between investors, because many seek to lock the gains after Nvidia The elevation of historical actions in 2023 and 2024. The last report on the results, although strong, failed to facilitate the concerns of the business future growth trajectory.
Despite the drop in stock, Nvidia The last report on the results was solid, the company providing results that exceeded the expectations of analysts.
The last quarter revenues reached $ 39.33 billion, marking an increase of 78% compared to the previous year. Nvidia The income from the data center alone jumped 93%, reaching nearly $ 36 billion, A reflection of The continuous demand for its AI tokens.
CEO Jensen Huang reassured investors that the business The perspectives remain strong, especially since new generation AI models require even more treatment power. He explained that the AI models evolve to think and reason step by step, A process that requires significantly higher calculation capacities.
“TThe quantity of calculation necessary to make this reasoning process is 100 times more than what we used to do,“” Huang told CNBC in an interview.
In addition, Nvidia confirmed that production problems for its next Blackwell chip have been widely Solved, preparing the land for a good start for the 2026 exercise. However, even with these insurances, the stock continued to slip, highlighting the wider concerns suspended above the semiconductor industry.
Semiconductor challenges and AMD Struggles
Nvidia struggles are not occurring In isolation. The wider semiconductor sector has been under pressure, with other major Tamias manufacturers Also undergo a significant drop in shares.
AMD, one of the Nvidia the biggest competitors were particularly hard hit. THE business The stock dropped by more than 10% this week and East Now down more than 13% since early February. The sale was triggered by A disappointing report of the fourth quarter results, which showed that AMD Data center income is not expectations.
The lowest than expected results have fueled speculation that AMD has trouble competing with Nvidia on the AI flea market, further strengthening Nvidia Dominance in the sector. However, given the rapid AI developments and the emergence of new competitors like Deepseek, Nvidia The position at the top is no longer as secure as it was in the past.
However, Nvidia The stock is still worth five times more than two years ago, at the start of the AI generating bomb.
Although short -term sale reflects competition concerns, geopolitical risks and slowdown in AI investments, many analysts believe that Nvidia remains well positioned to capitalize on the continuous expansion of AI technologies.
However, the question remains: can Nvidia quickly bounce back and recover its valuation of 3 billions of dollars, or is it the beginning of a more prolonged correction?
