Nvidia vs. Alphabet: Which Artificial Intelligence (AI) Stock Should You Buy After the Emergence of China's DeepSeek?

The emergence of a small Chinese artificial intelligence (AI) company called DeepSeek initially put a giant hole in the U.S. stock market. Tech stocks -- particularly those connected to the AI trend -- got crushed, and GPU king Nvidia (NASDAQ: NVDA) lost roughly $600 billion of its market cap in a single day as investors grew concerned about the company's moat, and whether AI software could be trained and powered at lower costs with less powerful chips.Now the big question that analysts and investors are grappling with is how serious a threat DeepSeek actually is to the AI sector's status quo. Some think that the company may have invested more money and used higher-quality chips to develop the DeepSeek R1 large language model than it's letting on, while others think its claims are legitimate. Some also think DeepSeek's innovations could prove a net positive for other AI companies long term. After the recent sell-off, would investors be better served to buy the dip on Nvidia or Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG)?The big reason that Nvidia got hit so hard by DeepSeek is that the Chinese company allegedly managed to create a chatbot with capabilities rivaling ChatGPT, but at a fraction of the cost. DeepSeek says it trained its model for just $5.6 million and used older Nvidia chips to do it. Meanwhile, OpenAI has spent more than $100 million to train certain ChatGPT models.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool