NVIDIA has soared to the top of the stock market by selling computer chips to promote the prosperity of the world’s artificial intelligence. A small Chinese company shows that it can use less work to achieve more reality.
On Monday, NVIDIA’s stock fell more than 16 % after the company (known as Deepseek).
DeepSeek’s release questioned the consensus of the technology industry. In order to establish a larger and better AI system, the company will have to spend billions of dollars on the new data center. In the center of these data centers, maybe until now, there is no AI project and no: a large number of libraries of the NVIDIA chip.
According to some estimates, Silicon Valley has controlled 90 % of the market for professional chips used to build AI systems. It has achieved amazing operations since the end of OpenAI’s ChatGPT at the end of 2022. In the past two calendar years, NVIDIA’s revenue has increased by more than 200 % to $ 126 billion, while the company’s total value has closed 700 % as of Friday, reaching a peak of US $ 3.62 trillion in November.
However, the obvious breakthrough of Deepseek shows that the appetite for NVIDIA chips may not be as infinite as some people imagined a week ago. Although NVIDIA is still in enviable positions (rarely compete for AI chips), companies buying their technology may slow their expenses.
“In the past, AI was larger, better, faster. More chips were equal to AI functions.” But this is too fast. It proposes the real time of NVIDIA and whether people need a lot of chips in the future. “
The DeepSeek version also delayed other semiconductor companies, including Broadcom, Micron Technology and Taiwan Semiconductor Manufacturing Company.
The arrival of DeepSeek has been crystallized, and it has been shaded on NVIDIA’s business. At the end of last year, artificial intelligence leaders began to warn that the improvement of chat robots is slowing. They used to rely on a simple formula to achieve progress: digging as much data from the Internet as possible, and pushing more and more computers to push large language models (ie, chatting robots to promote chat robots).
However, this concept is called an expansion method in the industry, because technology companies have run out of data, so they have begun to be unpopular. This has led the company to try new technologies to continuously improve its system. It also triggered the impact of NVIDIA investors on its business.
NVIDIA CEO Jensen Huang said at the CES Technology Trade Exhibition in January that new technology “promoted a huge demand for NVIDIA chips.” He said that the company is using NVIDIA chips to make more reasonable power models for data centers, which means that there are more demand for its technology, not less.
Nvidia spokesman MyLene Mangalindan said in a statement on Monday that Deepseek showed that these new technologies are working. She added: “Deepseek is a good AI progress.”
However, investors have been paying attention to whether the changes in the way of viewing AI will lead to NVIDIA’s business, and the success of Deepseek shows whether the uncertainty will build and deliver the AI system cheaper.
Daniel Newman, CEO of Technology Research Company Futurum Group, said: “This is something we have been working hard.” “Everyone is pursuing this goal because the cost of training AI is too high.”
Not everyone believes that the rise of Nvidia is stagnation. The company’s stocks have been fluctuating in August and were eliminated by more than 10 % in August. The company will postpone its latest artificial intelligence chips. Later rebounded.
Stacy Rasgon, a semiconductor analyst at Bernstein Research, said in a description of investors on Monday that Deepseek spent more money to build its system. He added that it should be more effective to build more AI systems, because more companies have the ability to invest in them.
Lasgon said in the weekend’s panic: “It seems exaggerated.”
The change of NVIDIA value is the latest proof of how AI continues to promote the stock market. Last year, Microsoft replaced Apple’s most valuable company in the world in June in June. NVIDIA soared two companies to win the championship.
Now Apple has released its own AI system, called the iPhone’s Apple Intelligence. But there are signs that it may not maintain this position for a long time. This month, after the customer and the company complained that its software is distorting the news report, it has banned one of the signature functions-summarizes and summarizes the news notice.
Newman said, “There is no winner here.” “The tool is okay. But if everyone can make better models at a lower cost, then people may start using AI” “” “
