Nvidia Plummeted Today -- Time to Buy the Artificial Intelligence (AI) Leader's Stock?

Nvidia (NASDAQ: NVDA) stock saw a dramatic sell-off in Monday's trading following developments that have raised questions about the demand outlook for its advanced processors. The artificial intelligence (AI) leader's share price closed out the day's trading down 17.2%.Nvidia plummeted today as investors, analysts, and tech leaders parsed new information about DeepSeek R1 -- a new open-source AI model from a Chinese start-up that released last week. DeepSeek's R1 is delivering performance that measures up to and even exceeds OpenAI's latest commercially available ChatGPT system in some respects, raising concerns about the U.S.'s positioning in the AI race with China.But the real kicker for Nvidia is that the R1 model was supposedly developed and trained using a relatively small number of the hardware leader's processors. The training of DeepSeek's new model was reportedly conducted using Nvidia's A100 graphics processing units (GPUs) along with substantial support from less powerful hardware. Investors are concerned that R1 signals that high-performance AI models can be created with significantly lower hardware requirements, and Nvidia stock saw a big pullback as a result. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool