DeepSeek built a competing large language model (LLM) to OpenAI's ChatGPT, but claims that it trained the model with old Nvidia processors that aren't widely used anymore. This news has shellshocked technologists and analysts across Wall Street because if DeepSeek's methods of building highly capable AI can be done using legacy hardware,

A warning of a U.S. stock market bubble, advises diversification into value stocks, commodities, and international equities to mitigate risk.

While the demand is there, it's clear that's not the sole reason why Nvidia's RTX 50 series is impossible to find in stores. Many retailers received fairly low stock quantities, as Nvidia reportedly experienced manufacturing issues.

Because Nvidia is still growing its revenue rapidly, using trailing earning metrics can give a false impression of where the company is headed. However, they're also useful in this case because its future had a wrench thrown into it thanks to DeepSeek's breakthrough.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.

Perhaps no stock was more profoundly affected by the news from DeepSeek than Nvidia (NVDA -2.42%). In a sense, DeepSeek validated its dominance by announcing its H800 accelerators