Nvidia Shares No Longer Bulletproof as DeepSeek Fears Linger
- The stock hasn’t recovered from DeepSeek-driven slump
- Key customers have earmarked $300 billion in capex spending
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Nvidia Corp. investors have typically rushed to buy the stock on any dips. But the mood since the DeepSeek-driven rout has been different, signaling that fears of a slowdown in AI spending aren’t going away.
Nvidia shares slumped 17% in a single day, erasing about $590 billion from the company’s market capitalization, after the Chinese AI startup claimed high performance at a lower cost. The stock has since regained some ground, but it’s still more than 12% below its January record high. That’s despite key customers Amazon.com Inc., Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. planning a combined $300 billion in capital expenditures this year.