In Damodaran’s view, if Deepseek’s low-cost AI platform proves competitive, it could undermine Nvidia’s position at the top of the chip market.
But while Deepseek’s claims are attracting attention, some experts have argued that the situation is not as disastrous for Nvidia as Damodaran suggests. According to The Motley Foo, there is still uncertainty about whether Deepseek’s technology is truly a game changer, and many analysts argue that Nvidia is well positioned despite the new competition. It’s there.
According to the report, Microsoft, Meta and Amazon continue to rely on Nvidia’s high-performance chips, making significant investments in AI infrastructure.
Despite their strong relationship with Nvidia with these tech giants, Damodaran’s warning about the potential commoditization of semiconductor chips remains in effect, according to the report. The growth trends of companies investing in internal chip development may reduce Nvidia’s dependence on products over time. But even so, Nvidia’s grip on the market doesn’t shake that easily.
FAQ
Why does Aswas Damodalan think that nvidia’s stock could fall?
Damodaran argues that Nvidia could face competition from Deepseek, a startup that offers cheaper AI solutions.
What is Deepseek and how can it affect Nvidia?
Deepseek is a Chinese AI startup that claims to provide similar AI capabilities to large companies like Openai, but is significantly lower. If that claim applies, it could challenge Nvidia’s control in the chip market.
Disclaimer Statement: This content is written by a third party. The views expressed here are those of the respective authors/organizations and do not represent views from the economic era (ET). ET is not responsible for, warrants, approves, or in any way. Take all the steps required to ensure that the information and content provided is correct, updated and verified. ET disclaims all warranties, express or implied, relating to the Report and the content therein.
