Nvidia Shares Vulnerable Amid Lingering DeepSeek Concerns
Nvidia faces investor concerns due to competition from low-cost Chinese competitor DeepSeek, impacting stock performance despite overall positive outlook.
Nvidia (NVDA) shares have shown vulnerability in early 2025, reflecting investor concerns about competition, particularly from Chinese competitor DeepSeek. This has led to market adjustments, with the company shedding nearly $600 billion in market capitalization at one point.
Despite these concerns, analysts remain optimistic about Nvidia's future, citing the continued high demand for AI technology and Nvidia's strong position in the AI chipmaking market, where it holds a significant market share. Nvidia's GPUs are crucial for AI and machine learning infrastructure. The company's data center business is expected to see substantial growth in 2025.
Nvidia is set to launch its next-generation GPU architecture, Blackwell, which is expected to drive substantial revenue. Analysts predict the stock could see a 70% upside in 2025, with potential to exceed $300 per share. However, some analysts predict a more moderate growth trajectory, estimating the stock could reach around $200 by the end of 2025.
Factors that could influence Nvidia's stock price in 2025 include product innovations, market demand for AI technologies, and broader economic factors, including potential tariffs.
