Jim Cramer says that DeepSeek’s threat to NVIDIA may not be so serious

CNBC’s Jim Cramer on Friday told the investor that it may not be a serious threat. nvidiaMany investors who feared many investors this week have said that China’s artificial intelligence startups may not have told Wall Street a complete story about its large language model.

“DeepSeek is a alternative universe that is a terrible sign to set the NVIDIA road price? Hey, anything is possible,” he said. “But if you have to design the most punishment method to reduce this great stock price, you will invent something like Deepseek.”

Earlier this week, investors said UN to learn that DeepSeek has developed an AI model, which stated that it would cost $ 6 million. The company also argued that the model could be better than the industry’s favorite Openai model. Wall Street concluded that Big Technology may not need to spend so much money on NVIDIA’s high altitude chips. The worrisome concern of the low profits is that the NVIDIA shares sharply fall, the stock price has decreased by nearly $ 600 billion in one session, and the largest day in market history.

CRAMER acknowledged that investors’ response was logical if the DeepSeek model was almost costly to make it. However, he states that DeepSeek has spent more programs than investors believe, referring to new reports of semiconductor research and consulting companies, Semianalysis. Semianalysis suggests how DeepSeek misunderstands the development of a new model, stating that the company has actually spent more than $ 500 million.

Crammer was also skeptical like a high -tech executive Meta,, Tesla and Oracle You would have invested a lot of money in NVIDIA without doing the appropriate demerization. Deepseek was not a secret, he continued, and it attracted a lot of attention this week.

“I think the Semian healing work is a spot,” he said. “It may be another long knife for NVIDIA, but there is nothing more.”

NVIDIA refused to comment. DeepSeek did not respond immediately to the comment request.

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Disclaimer CNBC Investing Club Charitable Trust has NVIDIA and Meta shares.