Can Nvidia Stock Still Hit $200 in 2025?

Nvidia (NASDAQ: NVDA) stock was crushed on Jan. 27, dropping 17% in a single session after a fresh wave of doubts came to the forefront following the cost-effective artificial intelligence (AI) model unveiled by Chinese start-up DeepSeek.DeepSeek's claim that it trained its R1 model for just $6 million and made it competitive enough to perform as well as the more expensive o1 reasoning model from OpenAI rattled investors. Shares of Nvidia have delivered stellar gains over the past couple of years, as its revenue and earnings have grown remarkably thanks to the booming demand for its expensive graphics cards that are used for training and deploying AI models.So, DeepSeek's claim of doing more with less has raised fresh concerns about the potential demand for Nvidia's chips in the future. However, this is not the only factor that has been weighing on Nvidia stock of late. The potential restriction on Nvidia's chip exports to international destinations and the relative slowdown in spending on AI infrastructure are also issues (which have now been exacerbated by DeepSeek's breakthrough).Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool