What were the issues back in January with DeepSeek?
Not only Nvidia, but many other companies were impressed by the fact that DeepSeek managed to create, train, and release an artificial intelligence model with a significantly lower budget than the majority of U.S. companies. So, various companies have thought that they don’t need to buy expensive chips to train all their AI models.
Back then, DeepSeek declared that it had trained its AI model on some chips that were not as high-quality as those offered by Nvidia. So, after these statements, the Nvidia market cap was down by $600 billion.
But after some time, the majority of companies observed that the Nvidia chips are still the best for training artificial intelligence models, because thanks to their quality and power, the AI models were capable of answering much faster to users’ queries and questions.
Now, the high-end processors from Nvidia are in the eyes of various big companies such as Microsoft, Amazon, Alphabet, and Meta, because they rely on the Nvidia processors and chips for their AI data centers and AI models.
However, it should be mentioned that the chipmaker reached a $1 trillion market value for the first time about 2 years ago in June 2023, and managed in about a year to triple the Nvidia stock valuation. Now, the only companies that have a stock market value of above $3 trillion, besides Nvidia, are Microsoft and Apple.
Now, Microsoft represents the second most valuable company that operates in the U.S., with a market valuation of $3.73 trillion. On the other hand, Apple has a market valuation of about $3.17 trillion.
