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Nvidia CEO Jensen Huang Says the DeepSeek Reaction Was Wrong. Here’s Why. - Barron's

1. NVDA CEO defends DeepSeek's compute-intensive AI model. He argues it will boost hardware demand. 2. Huang contends DeepSeek requires more computing; market misunderstanding caused initial drop. His view challenges common assumptions. 3. DeepSeek's open-source release spurred market volatility; NVDA shares fell 17% before recovery. Big Tech capex plans add confidence.

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FAQ

Why Bullish?

Huang’s optimistic view indicates increased GPU demand as compute-intensive AI grows, similar to past recoveries when market reinterpreted technological shifts.

How important is it?

CEO’s commentary and ensuing stock volatility, alongside increased capex by major tech companies, signal a significant and actionable impact on NVDA.

Why Short Term?

Immediate market re-rating from Big Tech capex boosts and rapid share recovery suggest a near-term positive impact.

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