NVIDIA Stock Plummets 16.8% as DeepSeek AI Ignites AI Sector Shake-Up

Summary:
• NVIDIA stock plunges 16.8% as DeepSeek AI, China’s ChatGPT rival, shakes the AI landscape. Can NVIDIA defend its dominance?

NVIDIA (NASDAQ: NVDA) is taking a massive hit today, with its stock plunging 16.8% in the wake of rising competition from DeepSeek AI, China’s ambitious generative AI platform. The selloff underscores investor concerns about NVIDIA’s ability to maintain its dominance in the rapidly evolving AI landscape.

DeepSeek AI, touted as China’s answer to ChatGPT, has sparked fears of increased competition in both AI hardware and software markets, shaking confidence in the broader tech sector.

What is DeepSeek AI?

DeepSeek AI is China’s latest foray into generative artificial intelligence, offering capabilities similar to OpenAI’s ChatGPT. Significant government investment and the nation’s increasing emphasis on AI autonomy render DeepSeek AI a genuine challenge to established competitors. This action is a component of China’s larger plan to lessen dependence on Western technology and establish an independent AI ecosystem.

NVIDIA Stock Analysis: Key Levels to Watch

• Nvidia Resistance Levels:
  • $130.03: A significant level NVIDIA needs to reclaim to signal any recovery.
  • $136.15: A secondary resistance that could attract short-term sellers on any bounce.
  • $144.46: A distant level that previously acted as strong resistance before the selloff.
• Nvidia Support Levels:
  • $119.02: NVIDIA’s current price, which aligns with a key horizontal support zone.
  • $116.19: A crucial support level; a break below this could indicate further downside.
  • $102.86: A deeper support level that may provide a safety net if bearish sentiment persists.

Time to Buy NVIDIA?

NVIDIA’s sharp drop reflects the growing uncertainty in the AI space as competition heats up. With DeepSeek AI threatening to disrupt the status quo and NVIDIA’s reliance on China facing challenges, the stock’s outlook has become increasingly uncertain.

For investors, the current dip could present an opportunity for long-term gains—but caution is warranted as the competitive and geopolitical landscape continues to evolve.