Nvidia’s share price has been on a rollercoaster ride recently. After experiencing a significant drop due to concerns over the Chinese startup DeepSeek’s AI models, Nvidia’s stock saw a sharp recovery.
However, there are mixed opinions about the potential for more downside. Some analysts believe that Nvidia’s stock still looks weak on the technical charts and may face further declines.
Some analysts suggest that Nvidia shares may trade in the range of $105 to $135 and recommend a ‘sell on rise’ strategy. Some also pointed out signs of technical deterioration, suggesting that Nvidia’s stock may be entering an intermediate-term corrective phase.
On the other hand, some investors are optimistic about Nvidia’s long-term growth prospects, especially with its strong fundamentals and continued advancements in AI technology.
The market remains dynamic, and the stock’s performance will likely depend on various factors, including broader market trends and developments in the AI industry.
Nvidia meteoric will likely change dramatically when face with an alternative AI chip manufacturer.
Doubt cast
DeepSeek, has made significant advancements in AI technology. There are claims and speculations that DeepSeek may have used some U.S. technology to enhance its capabilities.
For instance, it was reported that DeepSeek acquired a substantial number of Nvidia’s high-performance A100 graphics processor chips before the U.S. imposed restrictions on their sales to China. Additionally, there have been allegations that DeepSeek copied some technology developed by U.S. rival OpenAI.
However, these are unfounded claims and it’s important to point out that DeepSeek has also been praised for its innovation and efficiency, developing AI models at a fraction of the cost compared to leading U.S. tech companies.
This may even aid Nvidia as it could drive the cost of AI down bringing it to a wider audience more quickly thus enhancing Nvidia’s future sales.