Key takes
NVIDIA (NVDA) CEO JENSEN HUANG reported on Friday after the chip manufacturer’s strain Wild Week, which is planning to meet President Donald Trump at the White House.
On Friday afternoon transactions, stocks swayed during a loss of nearly $ 125. This week, China’s AI Startup Deepseek rapidly increased the market and lost more than 12 % of their value.
The rapid popularity of apps from Deepseek claims that it has developed an AI model comparable to the performance of American competitors, and about the competitiveness of American leaders in Wall Street, expenditures on technology, and dispatching stocks. The calculation was spurred. NVIDIA and other AIs are stocked on tail spins at the beginning of the week.
Nevertheless, analysts are mostly bullish in chip manufacturers, and Bank of America tells the client on Wednesday that “recent sale is a strengthening opportunity to buy.” Analysts such as Bernstein, Citi, Wedbush, and Raymond James also suggested that market reactions could be exaggerated.
Raymond James and Bank of America have added that competition with China can further spend more large companies such as Microsoft (MSFT), Amazon (Amzn), and Alphabet (Googl) to AI. I did it. ), And other AI chip manufacturers.
In this week’s revenue call, Microsoft and Meta executives planned to spend billions of dollars on AI infrastructure this year.
The Huang conference in the White House has been reported that the Trump administration could further tighten its restrictions on the sales of advanced US chips to China.
NVIDIA reported in November that sales to China accounted for more than 15 % of the third quarter chip manufacturers. NVIDIA will report the results of the fourth quarter on February 26.
