Nvidia It falls more than 12% in Wall Street premarket, leading a Strong sale of technological actionsdue to the growing concerns about the Chinese artificial intelligence (AI) Startup Deepseek. This company puts the United States leadership in the sector and raises doubts about the Nvidia business model, chaired by Jen-Hsun Huang.
According to Rabobank strategists, “Depseek’s pioneer model offers avant -garde results to a fraction of the usual cost.” This suggests that lAs companies could achieve more with less, which challenges the perception that the high processing power required by the benefit of chips manufacturers such as NVIDIA.
Kathleen Brooks, director of Research at XTB, emphasizes that Depseek is generating enthusiasm in the markets for being a Open source model, unlike OpenAI. This allows anyone to contribute to their development, reducing costs. Besides, Its R1 model is free, with a limit of 50 messages per daypositioning itself as a serious competitor of Openai and other AI giants in the United States.
Deepseek also raises doubts about the high expenses of US technology companies in AI. POr example, goal plans to invest between 60,000 and 65,000 million dollars this year, but Deepseek’s efficiency questions whether these investments are necessary to achieve similar results.
Another aspect highlighted by Brooks is how Deepseek develops advanced technology in spite of sanctions that limit China’s access to US high -tech chips. This calls into question if the most recent and expensive nvidia chips are indispensable, since Depseek managed to innovate using collective experience and limited resources.
Nvidia is not the only one that falls in Premarket, the casualties of other companies in the sector are also highlighted (-5.5%), Broadcom (-4.9%), Taiwan semiconductors (-4.5%), Qualcomm (-2.8%), AMD (-2.5%) and Intel (-2%).
Changes in expectation about AI
Deepseek’s emergence is reconfiguring expectations about AI, Challenging the belief that advances in the sector will boost the demand for chips and data centers. Its innovative approach has led to a reevaluation of the future of the technological sector.
Hangzhou’s little Startup behind Depseek He has gained relevance by overcoming Chatgpt and becoming the most valued free application in the App Store of the United States on Monday, according to Patrick Munnelly, Market Strategist of Tickmill Group.
Russ Mould, investment director in AJ Bell, explains that the “career for supremacy in AI” is seeing new competitors, which presses current leaders to innovate or lose ground. This phenomenon reflects a natural trend: when a product has high demand, more economical competitors are inevitably arise.
Finally, although Depseek represents a serious threat to American domain in AI, it still depends to some extent on Nvidia chips, although not the most advanced, such as Blackwell. However, This situation could mark the beginning of a significant disruption, Similar to the transition from China importer to exporter in the electric vehicle market.
Source: Ambito
