DeepSeek Panic Updates: Nvidia Stock Plunges 4% – As Donald Trump Reportedly Considering Chip Sales Bans in China
The United States stock market experienced extreme volatility during this week because China DeepSeek released their AI model which requires fewer capital investments compared to existing alternatives. This development resulted in significant losses at Nvidia on two consecutive days. Expensive semiconductor technology designs.
The stock price of Nvidia finished Wednesday at a 4% loss which eliminated $130 billion in market value as corporate earnings reports from Meta Facebook Tesla and Nvidia themselves were scheduled for this afternoon. Three factors existing in the market could push stock value in new directions.
The Nvidia stock price experienced turbulent movement in a week when investors first lost approximately $590 billion on Monday then gained about $260 billion the following day and later lost another $130 billion on Wednesday.
Nvidia stockholders should capitalize on the current selling dip because they consider this market condition to be excessive, as pointed out by Bank of America’s Vivek Arya in their Wednesday client letter. This statement solidifies Nvidia’s commitment to funding hundreds of billions of dollars in AI technology development within this decade.
Bloomberg obtained information from unidentified sources which revealed that President Donald Trump aims to enforce additional limits on Chinese semiconductor chip purchases from Nvidia after the Biden administration first placed export controls to stifle Chinese AI technology advancement.
Existing export regulation compliance between DeepSeek and Nvidia technology remains unclear even though Secretary of Commerce Howard Lutnick criticized DeepSeek during his confirmation hearing on Wednesday by stating “Nvidia’s chips, which they bought in droves, and they found their way, furthering their DeepSeek model. It must end.” ” China contributed more than 15% of Nvidia’s revenue in the recent quarter. It must end.” The latest fiscal quarter demonstrated China as providing revenue exceeding 15 percent for Nvidia’s business operations.
