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Why Nvidia Stock Is Plummeting Today

1. Nvidia shares fell 13% after DeepSeek's AI model launch. 2. DeepSeek's model rivals US tech giants, raising concerns over AI spending. 3. Nvidia's market cap dropped nearly $480 billion during the sell-off. 4. Analysts are skeptical of DeepSeek's achievements without advanced chips. 5. Continued success of DeepSeek may lower future demand for Nvidia's GPUs.

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FAQ

Why Bearish?

DeepSeek's development poses a direct risk to Nvidia's high valuations and demand.

How important is it?

DeepSeek's insights may change competitive dynamics in AI, affecting Nvidia's market position.

Why Short Term?

Immediate market reaction indicates uncertainty but may stabilize as analysts reassess views.

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