The Branch Group of the “magnificent 7” ruled in 2024 and led the technology sector to another banner year. As you can see from the following charts, all seven magnificent stocks have defeated S & P 500 last year.
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Microsoft is the only stock that fell below S & P 500 last year, and thanks to NVIDIA’S, last year’s seven spectacular baskets would have returned about 60 % last year. (NVDA -3.67 %) Out performance.
NVIDIA is a good bet that China’s artificial intelligence (AI) Chatbot Deepsek R1 shakes the AI and Tech sector, reduces the stock of NVIDIA by 17 % in one session, and then becoming a magnificent Seven top performance. I think. Monday. Before working on NVIDIA’s overall case, let’s look at the problem before this year.
Image source: Getty image.
The reason why DeepSeek’s threat to NVIDIA seems to be exaggerated
DeepSeek has created Chatbot Deepseek R1, which provides results comparable to Chatgpt or Alphabet Gemini, but has much less Power, many of the highest NVIDIA, which is dependent on American emerging companies like Openai. I do not have.
Silicon Valley Venture Capitalist Mark and Leisen called “AI SPUTNIK MOMENT” in social media posts.
NVIDIA tilts the cap to Deepseek and calls it “excellent AI progress.”
Wasing one -sixth of the value of NVIDIA is unknown from the market because it is unknown what DeepSeek’s impact is, especially when the tension is growing between the United States and China, especially during new technology cold wars. It seems to be the reaction of the knees.
However, if Deepseek accepts AI’s clear progress, it does not necessarily mean NVIDIA a loser. Reducing the cost of entry into AI functions such as training and inference, the industry democratizes and is allowed for more participants. The price of the NVIDIA component may fall, but the number of buyers may increase. In addition, the company has proved the ability to evolve in the past, providing services to encryption and AI from the video game industry, especially as the number of industries such as autonomous cars increases. May continue to expand.
Why can NVIDIA be the top “magnificent 7” stock this year and this year?
It takes time for DeepSeek’s confusion to occur, but at this point, suddenly changing the course during a system construction system based on NVIDIA GPUs such as Tesla, Meta Platforms, Openai, and Oracle. There is almost no. It is also worth noting that DeepSeek uses NVIDIA chips. All you have to do is use the old version obtained before the advanced chip export restrictions were introduced.
It seems that the NVIDIA chips may be more powerful than before, which can be a benefit for the company. In the meantime, the profits have increased by 94 % in the third quarter, and the management has stated several times that demand has continued to surpass the supply.
In addition, NVIDIA looks like a good bet to keep acquiring because the evaluation still looks attractive. The estimated value may change based on the Deepseek’s threat, but the shares are currently trading at the price vs. 27, which matches S & P 500. Like bargains, despite the risks facing inventory.
Finally, regardless of whether DeepSeek is disturbing the AI market, the competition for artificial general information (AGI) continues and remains as high as before DeepSeek launch. It’s a good bet that NVIDIA will continue to play a role in the next frontier of the race and technology as the leader of AI chips. This should increase the stock higher than this year, despite the fear of DeepSeek.
SUZANNE FREY, an executive of Alphabet, is a member of the Motley Fool’s Board of Directors. Randi Zuckerberg, a former director of market development, Facebook spokeswoman, and sister of Mark Zuckerberg, the CEO of Meta Platform, is a member of the Motley Fool’s Board of Directors. Jeremy Bowman has a Meta Platform and NVIDIA position. Motley fools have a position in Alphabet, Meta Platforms, Microsoft, NVIDIA, Oracle, and Tesla. Motley Fool recommends the following options: A $ 395 phone call at Microsoft in January 2026 and a $ 405 call to the short -term Microsoft in January 2026. Motley fools have a disclosure policy.
