If you think investing in AI is just about watching stock charts go up, think again—this week has been a rollercoaster. Our top holding, NVIDIA (NVDA), took a major hit after the emergence of a new AI player, DeepSeek, sparked panic on Wall Street. But should we be worried? Let’s break it down.
DeepSeek’s Big Move
DeepSeek, a Chinese AI startup, turned heads by training a powerful AI model, DeepSeek-R1, on a surprisingly low-cost setup of just over 2,000 NVIDIA H800 chips. The implication? Maybe cutting-edge AI doesn’t need NVIDIA’s top-tier GPUs after all. Investors freaked out, sending NVIDIA’s stock plunging 17% in a single day, wiping out a mind-boggling $600 billion in market value—the largest one-day loss for a U.S. company.
Jensen Huang Hits Back
But hold up. Jensen Huang, NVIDIA’s fearless CEO, quickly stepped in to clear the air. He explained that while DeepSeek’s achievement is impressive, it doesn’t change NVIDIA’s dominance in AI hardware. The most advanced AI models still require massive computing power—something NVIDIA’s high-end GPUs deliver better than anyone else. In other words, DeepSeek’s success is more like a cool party trick than a real threat.
Surgevesting’s Take
Here’s where we stand:
• AI demand isn’t slowing down. If anything, DeepSeek’s success proves NVIDIA’s products are still the gold standard for AI training.
• Market overreactions create opportunities. A short-term sell-off doesn’t mean NVIDIA is suddenly doomed. In fact, these dips often make for great buying opportunities.
• Jensen Huang is playing the long game. He’s been leading NVIDIA for decades, and every time skeptics count the company out, it comes back stronger than ever.
At Surgevesting, we’re not shaken. If anything, we see this as a classic case of the market getting ahead of itself. We’re still riding with NVIDIA because, in the long run, AI runs on their hardware.
The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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