Nvidia is in danger of losing its monopoly-like margins
Posted: Jan 29, 2025
- Nvidia, a dominant supplier of chips for AI, saw a nearly $600 billion loss in stock value after a Chinese firm, DeepSeek, introduced a cheaper AI model
- Many in Silicon Valley believe Nvidia has a strong market position, but this recent event has raised doubts
- DeepSeek's AI model, costing less than $6 million to train, caused significant damage to Nvidia's stock price
- Nvidia's monopoly-like margins are at risk from new competitors like DeepSeek, suggesting potential shifts in the semiconductor industry.
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - While there is belief in $NVDA's strong competitive position, there are concerns about external influences on stock price and comparisons to other companies that have lost margins. Summarized comments: - Concerns about hit piece news stories potentially influencing $NVDA stock price - Comparison to $TSLA, noting high margins and potential decrease over time - Discussion on the strength of $NVDA's competitive moat, with software and hardware integration being key strengths - Skepticism over other companies like $AMD and $INTC being able to compete with $NVDA Stock tickers discussed: $NVDA, $AMD, $INTC, $TSLA
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