Why DeepSeek's Chip Push Doesn't Spell Trouble for Nvidia Corp (NVDA)
Why DeepSeek's Chip Push Doesn't Spell Trouble for Nvidia Corp (NVDA).
The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Nvidia Corp (NASDAQ: NVDA ) is one of the best stocks to buy for the AI boom in the second half of 2026 . Nvidia stock is a favorite of elite investors, as some 275 hedge funds have positions in this AI chip stock.
On July 7, Reuters reported that Chinese tech startup DeepSeek is developing its own AI chips to reduce its reliance on Nvidia chips. That report shook Nvidia stock, with shares slipping about 1.6% in premarket trading.
However, according to Richard Windsor, analyst at Radio Free Mobile, DeepSeek's effort is unlikely to materially affect Nvidia's AI chip business. First, Windsor noted that Nvidia is "at zero in China and staying there," referring to Nvidia's already shrinking business in China due to US restrictions on chip exports.
Second, Windsor commented that DeepSeek has almost zero chance of challenging Nvidia outside China. Not only is China shut out of the world's most advanced chip manufacturing capabilities, but designing perfect AI chips takes years and requires massive capital.
Nvidia Corp (NASDAQ:NVDA) is an American global semiconductor company. It builds powerful computer chips with a broad variety of applications. Nvidia chips are widely used to train and run large AI models. Nvidia also provides various software solutions to the AI industry.
While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
READ NEXT: Billionaire David Abrams' Top 9 Stock Picks with Seth Klarman Stock Portfolio: 10 Best Stocks to Buy .
Sinergia Empresarial continuará el seguimiento de esta información sobre why DeepSeek's Chip Push Doesn't Spell Trouble for Nvidia Corp (NVDA) y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.
