If I Could Only Buy One AI Stock, This Would Be It

Share prices of semiconductor giant Nvidia (NASDAQ: NVDA) are down by about 5% so far in 2025. Despite solid fundamentals, the company's stock tanked on marketwide concerns about a potential slowdown in artificial intelligence (AI)-related spending in the coming months. Wall Street panicked after Chinese start-up DeepSeek announced training an open source AI model, DeepSeek-R1, for less than $6 million -- significantly lower than the $100 million used to train OpenAI's GPT-4.However, many industry experts are now casting doubts on DeepSeek's claims about training the model with only 2,000 H800 graphics processing units (GPUs) in contrast to 25,000 H100 GPUs for GPT-4. Scale AI CEO Alexander Wang has suggested that DeepSeek has used as many as 50,000 H100 chips but has not disclosed this due to U.S. export controls. While Wang has not provided any evidence, it raises questions about the credibility of DeepSeek's claims.However, even if DeepSeek has succeeded in realizing cost efficiencies in the generative AI space, it can eventually prove beneficial for Nvidia. With technology becoming more cost effective and efficient, demand will surge, which in turn will drive up the total addressable market and sales of AI-optimized chips.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool