Nvidia CEO Addresses $600B Sell-Off Concerns

Nvidia CEO Jensen Huang addressed investor concerns after a $600 billion drop in market value following DeepSeek's release of its R1 AI model, which utilizes lower-capability chips. Investors feared that this innovation would decrease demand for Nvidia's high-performance chips, but Huang asserted that the need for advanced computing remains strong, especially for post-training AI processes. Despite the initial market reaction, Nvidia's stock has largely recovered. Huang emphasized that DeepSeek's advancements are beneficial for the AI sector, potentially expanding and accelerating AI adoption. Analysts, including those from JPMorgan, agree that DeepSeek's model will likely increase demand for Nvidia's GPUs.