AI stock is being sold following jarring news from China.
Last week, the financial world finally had something to talk about other than nvidia… well, kind of thing.
Now you’ve heard a lot of chatter about a Chinese artificial intelligence (AI) startup called Deepseek. Deepseek has built a large-scale language model (LLM) that competes with Openai’s ChatGPT, but claims it trained the model on an older Nvidia processor that is no longer widely used. The news shell-shocked technologists and analysts across Wall Street. Because if Deepseek’s highly capable AI can be created using Legacy Hardware, Nvidia’s latest architecture could become outdated.
Naturally, Deepseek’s story served as a jarring and calm moment for AI enthusiasts who have repeatedly purchased for the majority of the past two years.
Below we argue why an ongoing sale between AI stocks can be a unique purchase opportunity, depending on the company you are looking for. What’s more, a little-known data center stock called Nebius Group claims the reason (NBIS) -1.65%) This is a particularly fascinating opportunity at this point.
Seeing the latest comments on Big Tech can be a clue
It is important to note that panic sales, which has dominated the technology sector over the past few days, is rooted in the idea that demand for Nvidia’s latest graphics processing units (GPUs) could stall. The concept of technology companies normalizing capital expenditure (CAPEX) budgets has merit, but I think recent comments from Big Tech could put these horrors aside.
Some members of “The Magnificent Seven” recently reported revenue for the 2024 calendar year, with management dropping numerous crumbs on their AI roadmap during the revenue. Let’s dig into knowing Nvidia customers, including Microsoft, Tesla, and Meta platforms.
Microsoft: Given Microsoft’s close alliance with Openai and the deployment of ChatGPT across the company’s ecosystem, analysts tend to focus primarily on Azure Cloud Business. The fact of the matter is that Azure growth experiences some notable decline and flow – as with other cloud infrastructure operations from hyperscalers such as Amazon and Alphabet. At this point, Azure is reducing growth. Therefore, Microsoft management has revealed that “the growth rate will be lower than in 2025” with regard to CAPEX spending this year. Tesla: Tesla is primarily considered an automotive business, but investors should not underestimate the company’s location in the AI landscape. Two of Tesla’s biggest growth initiatives include the development of a fleet of self-driving cars known as Robotaxi and a humanoid robot called Optimus that can be deployed in factories and other work spaces. To build these products, Tesla has invested billions in AI infrastructure. During the company’s fourth quarter revenue call, Tesla’s chief financial officer Vaibhav Taneja said, “We’ve accumulated AI-related CAPEX, including infrastructure, to date, about $5 billion. -YEAR based.” Platform: Early January, Meta announced it plans to spend up to $65 billion in CAPEX in 2025. The warning here is that Meta made this announcement before Deep Shek Saga. However, during the company’s fourth quarter revenue call, Meta’s management doubled this year’s CAPEX plan. The company aims to invest heavily in several areas of the AI spectrum, including infrastructure items such as data centers, servers and chipware. .
My interpretation from Big Tech’s commentary is part of a company that may not have to invest so much in infrastructure this year. This seems bad news for the superficial Nvidia, but I think it actually makes sense. After all, at some point, the billions of dollars Big Tech is already firing must have begun to pay off. In other words, I think it would be surprising if CAPEX budgets were actually constantly rising linearly.
Image source: Getty image.
How does Nevius relate to Nvidia?
Nvidia is actually an investor in Nebius. Therefore, there is a close relationship between the two AI companies.
Nebius is expected to break through the ground in a GPU cluster in Kansas City, Missouri this quarter. It will consist primarily of “Nvidia Hopper GPUs in the early stages” and will be enhanced later this year with Nvidia’s latest architecture, known as Blackwell.
In addition to that, Nebius has built data centres in Finland and Paris, featuring a combination of Nvidia’s H100, H200 and Blackwell GPUs.
Do you purchase Nebius stock?
The chart below shows price action between Nvidia and Nebius in 2025. The obvious commonality between the two strains is that both were rushing as exactly the same time. That is, when Deepseek is in the spotlight.
NBIS data by YCHARTS
The nuance from comments by Big Tech leaders is that Capex Sende should not decline on the terms of absolute dollars. What they say is that growth in their spending could slow down, but these companies still plan to spend a lot on infrastructure.
This is important as data center companies such as Nebius work closely with Nvidia. As outlined above, Nebius’s services are already in high demand – and Nvidia appears to be at the root of these dynamics. Capex habits remain flowing from the biggest players in AI, but the subtle theme here is that Nvidia’s chipsets will still be a major feature. As long as this is true, I see Nebius continuing to profit.
Following the sharp decline in Nvidia, Wedbush Securities Analyst and longtime technology sector Bull Dan Ives called DIP a “golden” opportunity to buy it. I agree with IVE, take his comments a step further and encourage investors to consider DIP on adjacent opportunities such as data centers. To me, Nebius is still well positioned for the long term, and the stocks look attractive given their sharp decline.
Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of Motley Fool’s board of directors. SUZANNE FREY, an executive of Alphabet, is a member of the Motley Fool’s Board of Directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. Motley Fool has positions and recommendations from Alphabet, Amazon, Meta Platforms, Microsoft, Nebius Group, Nvidia and Tesla. Motley Fool recommends the following options: A $ 395 phone call at Microsoft in January 2026 and a $ 405 call to the short -term Microsoft in January 2026. Motley fools have a disclosure policy.
