The Market Just Got Nvidia Totally Wrong

NVIDIA dropped about 11% in pre-market, let's take a look why they're wrong...

NVIDIA has dropped 11% or $400 billion pre-market in what is putting today on track to be the biggest 1 day loss of any company in history.

Everyone’s panicking over Nvidia’s 11% drop like AI suddenly doesn’t need GPUs anymore.

DeepSeek, a Chinese AI startup, just released a incredibly efficient open-source model - and investors think that’s bad news for Nvidia. They’re dumping stock like AI compute demand just vanished overnight.

But if you actually understand how AI works, you know this is complete nonsense, and if you both know the market and AI, you’ll take this time to buy the dip.

DeepSeek built their model in two months for under $6 million, and it’s already competing with GPT-4. That’s wild. By comparison OpenAI spend 100 million dollars for ChatGPT 4.

But here’s the thing - this doesn’t change Nvidia’s dominance one bit. If anything, it proves how much AI is still dependent on high-performance hardware.

Even DeepSeek had to train their model using Nvidia GPUs (4090s, to be exact). That alone tells you everything.

The market is getting this completely wrong, and a reversal will happen once people realise NVDIA is still continuing to make record profits despite this.

This isn’t a reason to sell Nvidia—it’s just more proof that AI is accelerating. More breakthroughs mean more AI, and more AI means more demand for compute.

Smart money isn’t paper-handing this dip. They’re buying it.

While DeepSeek's R1 model represents a significant advancement in AI, it does not diminish the essential role of NVIDIA's hardware in the field. The current market reaction may be an overcorrection, and those with a comprehensive understanding of AI and market dynamics might view this as an opportune moment to invest in NVIDIA.

All this advancement means, is that we’ll be able to squeeze that much more out of the GPUs NVDIA is producing, that means buy buy buy.

Personally I’m bullish on NVDIA and I’ll personally be buying more today.