DeepSeek Dip a "Buying Opportunity" for Nvidia and U.S. Tech Stocks, Says Wedbush
The market reacted negatively to DeepSeek's open-source AI release through shares of Nvidia (NVDA, Financial) and U.S. tech stocks, but Wedbush analysts urge investors to see the dip as a chance to buy. DeepSeek, based in Hangzhou, announced its R1 AI model development took two months to complete while spending less than $6 million. The model achieved explosive popularity and ascended to become Apple's App Store's number one position.
Warning! GuruFocus has detected 4 Warning Signs with NVDA.
DeepSeek's R1 model threatens American giants OpenAI and Meta (META, Financial), yet Wedbush analyst Dan Ives dismisses its impact on Nvidia and competitor performance. DeepSeek's remarkable achievements face multiple hurdles because of strict U.S. chip export regulations, according to Ives' assessment. DeepSeek's ability to contend against established U.S. tech infrastructure is in serious doubt, according to his analysis.
Ives interprets the current decline in United States tech shares because he notices frequent market patterns that make these price levels attractive to investors. The extensive corporate investment by U.S. firms in AI across numerous applications, including robotics and autonomous mobility, makes it difficult for DeepSeek to create meaningful competition. The analyst confirmed Nvidia continues to reign as the dominant AI hardware market leader.
This article first appeared on GuruFocus.
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