TLDR:
- Nvidia stock dropped 15% over five days after Chinese startup DeepSeek claimed to train AI models at a fraction of usual costs, though experts question these claims
- Nvidia’s earnings report is due February 26th, with the company expected to announce first revenue figures from its new Blackwell architecture
- The company has attracted nearly $30 billion from retail investors, with individual portfolios now allocating over 10% to Nvidia stock
- Currently trading at 27x forward earnings, its lowest level in a year, after recent stock price declines
- Nvidia’s data center unit now comprises 87% of revenue, marking a shift from its historical focus on gaming GPUs
Nvidia’s stock has experienced a decline in recent days, dropping approximately 15% over five trading sessions following an announcement from Chinese AI startup DeepSeek.
The startup claimed it had trained its AI model at a significantly lower cost compared to major U.S. tech companies, raising questions about future demand for Nvidia’s premium chips.
The stock decline comes after a remarkable 2023 performance, where Nvidia shares soared 171%, leading the Dow Jones Industrial Average. The company’s success led to its recent inclusion in this prestigious market benchmark.

Nvidia’s transformation from a gaming-focused company to an AI chip leader has been dramatic. While historically known for graphics processing units (GPUs) in the video gaming industry, Nvidia’s data center unit now generates 87% of its revenue, reflecting the company’s successful pivot toward artificial intelligence applications.
The company’s CUDA parallel computing platform has played a crucial role in this transformation, enabling GPUs to excel beyond gaming applications. Nvidia has built a comprehensive ecosystem of AI products and services, including networking options and software solutions.
The recent stock pressure stemming from DeepSeek’s announcement has been met with skepticism from industry experts. Analyst firm SemiAnalysis suggests that DeepSeek’s actual GPU investment may have exceeded $500 million, substantially higher than the reported $6 million figure.
Retail investors have shown strong interest in Nvidia stock, contributing nearly $30 billion in investments. Individual portfolios now commonly allocate over 10% to Nvidia shares, highlighting widespread confidence in the company’s market position.
Earnings Report Feb 26th
On February 26th, Nvidia will release its fiscal fourth-quarter and full-year 2025 earnings report. This announcement will include the first revenue figures from the company’s new Blackwell architecture, which the company previously indicated would generate several billion dollars in revenue.
The broader AI market environment remains supportive of Nvidia’s growth prospects. A recent partnership between the U.S. government and OpenAI has resulted in a $500 billion infrastructure project, with Nvidia named as a key participant.
Current market forecasts project the AI market to expand from its present $200 billion value to over $1 trillion by 2030, suggesting continued growth opportunities for established players like Nvidia.
The company’s stock currently trades at 27 times forward earnings estimates, marking its lowest valuation level in the past year. This represents a notable shift from previous higher multiples.
Nvidia continues to maintain its technological edge through ongoing innovation in GPU technology and AI software frameworks. The company’s products remain integral to complex AI computations and data center operations.
Beyond its core AI focus, Nvidia maintains a presence in gaming, autonomous vehicles, and cloud computing sectors, providing some diversification to its revenue streams.
The company has also increased its attention to sustainability initiatives, developing more energy-efficient GPU technology to address environmental concerns and meet growing demand for sustainable technology solutions.
Security remains a priority for Nvidia, with the company implementing advanced protocols to protect data integrity in AI applications, an increasingly important consideration for enterprise customers.
Recent partnerships and infrastructure projects suggest continued strong demand for Nvidia’s premium chips, despite short-term market concerns about potential cost pressures.
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