DeepSeek ‘Doomsday’ for Nvidia Stock? 3 Reasons This Analyst Says ‘No.’

Panic is hitting Wall Street on Monday morning, with major semiconductor stocks like Nvidia (NVDA) and Broadcom (AVGO) down more than 10%. The reason for the chaos is DeepSeek, a new artificial intelligence (AI) model released by a Chinese startup. 

Most troubling to investors is the fact that its creators say that DeepSeek cost just a fraction of what OpenAI, Alphabet (GOOGL) and others have spent on developing and training models. The price tag circulating for DeepSeek is $5.6 million, compared to $50 billion in annual AI spending planned at OpenAI.