Why Nvidia Stock Is Plummeting Today
Shares of Nvidia (NASDAQ: NVDA) were sinking Wednesday. The company's stock fell 6.2% as of 2:20 p.m. ET, but lost as much as 6.9% earlier in the day. The move comes as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.8% and 1.1%, respectively.
The artificial intelligence (AI) superstar continues to struggle in the wake of the release of DeepSeek. Now, the release of another Chinese entrant is stoking fears that the U.S. is lagging behind.
Shares of Nvidia have been on a roller coaster this week after the latest version of DeepSeek -- an AI app from a Chinese start-up -- was released. The model was trained for a small fraction of the cost of its U.S. counterparts and, critically for Nvidia, without the use of Nvidia's best chips. Investors are wary that this will mean demand will cool for the company's chips.
Source Fool.com
