Nvidia's Rollercoaster: From AI Kingpin to Market Plunge

Nvidia's remarkable rise in the stock market stumbled after a reported breakthrough by DeepSeek, a Chinese competitor. Despite a massive dip, some analysts see potential in lowering AI costs. The Santa Clara tech giant remains a pivotal force behind the burgeoning AI revolution with its GPUs.

Nvidia's meteoric rise in the stock market faced a setback as its shares plummeted nearly 17% on Monday. The dip erased $595 billion in market value amid concerns over a competitor, DeepSeek, claiming to have developed a cost-effective AI model rivaling Nvidia's technology.

Previously known in niche tech circles, Nvidia's expansion into the mainstream occurred as its sales of GPUs surged, vital for AI applications and driverless technology. Despite the downturn, many analysts view the fall as a buying opportunity, emphasizing the enduring demand for Nvidia's GPU technology in AI development.

Analysts predict that while new models promise efficiency, demand still outpaces supply, keeping Nvidia at the forefront of the AI 'gold rush'. Historically, other tech giants have faced similar hurdles and rebounded strongly, suggesting potential resilience for Nvidia too.

(With inputs from agencies.)