teeth nvidia (NVDA) 0.90%)) Are you having trouble? This is a question many investors have been asking after the stock fell more than 20% from its recent high.
Find out what happened with Nvidia today and whether another stock is a wise choice for AI investors in 2025.
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How Deepseek challenges Nvidia’s papers
That’s a good rule of thumb for investing Always have Paper – rationale Why do you believe Stocks offer value over the long term.
For Nvidia, the most widely accepted paper explaining the rapid rise in its inventory is that the company will become the engine behind the AI boom. The AI revolution requires millions of GPUs, and Nvidia sells many of them, generating hundreds of billions of revenue and profits.
It’s solid paper, And what I share. However, the emergence of Deepseek developed in China, that’s right I’ll lower that paper. Specifically, the designer claims that It only took a small portion of my computing power Model, aApproximately $5.6 million.
If these claims are accurate, That seems to be true American companies spend more than they need on Nvidia GPUstherefore A paper that says that inventory will collapse.
Why Nvidia investors shouldn’t panic
First of all, I don’t think Deepseek will hurt Investment paper In the case of nvidia.
Part of the reason It means you’re watching news coming out of China. – Especially related to AI – Scepticism of healthy doses. China is America’s great geopolitical rival, and propaganda and misinformation are used by great powers to promote their purposes.
Furthermore, since the US government imposed export restrictions on certain NVIDIA GPUs, There are various parties that you might want to vague either GPU It was used Train the DeepSeek model.
Furthermore, an analysis by research firm Semianalysis noted that the cost of training a Deepseek model is $500 million, almost 100 times higher than what the designers reported.
So, in my opinion, there is no good reason to forget Nvidia’s stock. Nevertheless, some investors may want to cut down their holdings or simply move on. And in that case, My suggestion is to check Outside Palantir Technologies (pltr -0.39%)).
Why is Palantir the next great AI company?
For those who closely follow AI stocks, Palantir is one of the big names. However, for the average investor, it is far from an iconic company. But it is already a corporate giant.
At the time of writing, Palantir’s market capitalization is $241 billion. It’s more valuable McDonald’s, AT&Tand American Expressto Name only three legendary US companies. Palantir is currently the 32nd largest American company. And it has everything It happened in an instant. A year ago It wasn’t even a part of it S&P 500.
So why does Palantir Stock have such hot stripes? The answer is that it is aiming for To do something Microsoft In the 1980s: It became the operating system of the next technological revolution.
The company operates an AI-powered platform that can analyse organizational data and drive impressive efficiency. Take the promise and power of AI hardware and use it practically.
As a result, the basics are almost perfect. In the latest quarter (ends December 31, 2024), Palantir blew up expectations.
Revenues rose 36% year-on-year to $828 million.
Overall customer numbers increased by 43%.
Adjusted free cash flow rose to $517 million.
The company continues to attract new clients who want to use the AI platform. Second, management provided bright guidance that came far ahead of expectations and fueled others big Increase in Palantir’s stock. Stocks have grown more than 500% over the past 12 months.
To close, I still believe in Nvidia’s papers. I think so The company has been in a position to benefit from the AI revolution for many years come. but, For investors Who is it? Looking for another stock that could turn even further upside down than nvidiaI I’ll consider it Palantir Technologies. Like Microsoft before that, the company could be a decades-long winner To make it.
American Express is the advertising partner of Motley Fool Money. Jake Larch holds positions for AT&T, McDonald’s and Nvidia. Motley Fool has jobs at Microsoft, Nvidia, and Palantir Technologies and recommends. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. Motley Fools have a disclosure policy.
