You may have heard about today’s NVIDIA and its stock prices, even if you are not paying much attention to the stock market.
The company has broken the record of the greatest loss of US stock market companies.
NVIDIA’s stock price has fallen by 17 %.
This is worth a significant loss of $ 593 billion ($ 948 billion). This is near $ 1 trillion in Australian currency.
This is what you need to know about the company that everyone is taking.
What is NVIDIA?
NVIDIA is a technology company that manufactures chips, systems, and software that run artificial intelligence (AI), games, graphics, etc.
Established in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem.
At that time, the purpose was to “bring 3D graphics into games and multimedia markets.”
In 1999, NVIDIA released GeForce 256, the world’s first dedicated PC graphic processing unit (GPU).
NVIDIA was the world’s most valuable company last June, using four -character code NVDA in the stock market.
But not all were smooth sailing.
NVIDIA was hit in September in September, when the stock price dropped by 9.5 %. At that time, US companies’ market value decreased the most.
It was until Monday when NVIDIA broke its own record.
NVIDIA has invented a graphic processing unit or GPU. (Reuters: Robert Galbrace)
How much is the NVDA stock price?
At the end of the trade in the US stock market on January 27, it was US118.42.
Compare it a few weeks ago as the US $ 149.43 on January 6. This is the best time ever.
Looking at the three -month stock price, you can see that it is a very important dip.
You can see the price of diving at the right end of the graph. (Supply: NVIDIA)
Why is NVIDIA in stock down?
Creators claim that only the NVIDIA chip is inexpensive versions because the AI chatbot called DeepSeek has been successful.
China’s technical startup DeepSeek was founded in 2023 and advertised chatbots as good as ChatGpt, but it is free.
What is DeepSeek?
Last week, a research paper on the new model of DeepSeek, called R1, was published.
The kicker seems to have been created using a very advanced version of the NVIDIA chip.
This claim has been discussed, but I was wondering how much threats it would be to NVIDIA.
That was because the dissertation claimed that DeepSeek had spent only 6 million US dollars to make it.
For context, analysts estimate that large US companies will spend $ 250 billion on AI infrastructure this year.
Therefore, this makes people wondering if NVIDIA will continue to earn as much money as before.
As a result, the wheels were moving for panic among investors, but things did not really start until Deepseek soared on the top of Apple’s App Store on Monday.
Investors have started selling stocks and nearly 600 billion dollars has been wiped out by the market capitalization of the company or “market capitalization” before the US stock market was closed. Shareholders.
At the time of closure, the price of one NVIDIA share was $ 24.20, 17 % lower.
DeepSeek’s success surprised investors. (Reuters: Dad Rubicch)
How bad is this for NVIDIA?
Obviously, losing nearly 600 billion dollars is not ideal for any company.
However, it is worth noting that the company’s stock prices are still quite high.
See this chart. It shows the growth of NVIDIA’s stock price in the past year.
The stock price is about twice as much as last year. (Supply: NVIDIA)
You can see that even if there is a loss on Monday, it is more valuable than last January.
On January 29, last year, it was worth $ 62.47. It’s a little over half of today’s value.
And now, see the growth after 2013:
NVIDIA’s stock price has risen from 2023, but it is still significantly higher in consideration of Monday losses. (Supply: NVIDIA)
NVIDIA has increased by more than 700 % within two years due to the value of only $ 14.32 in the early 2023.
At that time, more than $ 100 was added to the stock price.
ABC North American correspondent, Calington Clark, suggests that he can participate in the game he is waiting for to see how to bread out for NVIDIA.
“In many cases, new information is often seen in markets that are being sold, but the immediate concern is probably panic,” he says.
“The high expectations for future profits were not based on solid positions (yes).
“(We wait to see how this is processed.
“NVIDIA has a history of rising again after seeing a large -scale sale.”
For example, let’s consider a decline in September. The stock price fell to US102.83 at the lowest point on September 6.
One month later, the price was $ 124.92.
