What does it mean for your portfolio?
of ConsumerAffairsYour 401(k) account may have taken a hit this week after Chinese chipmaker DeepSeek announced it could produce artificial intelligence chips more cheaply than Nvidia and other U.S. semiconductor firms.
Nvidia lost about 20% of its value in Mondays trading and many other tech companies sold off as well. But Ed Yardeni, president of Yardeni Research, thinks the market reaction may be a little overdone.
In an interview with CNBC, Yardeni said DeepSeeks progress may pose a problem for Nvidia, but other tech companies could stand to benefit since there may be a cheaper source of AI chips.
I think what is happening in the AI market means that competition is increasing and competition is a good thing for users of AI, Yardeni said.
After digesting the news, Chris Chung, founder of Solana swap platform Titan, said an important fact is being overlooked. DeepSeek isnt doing anything revolutionary or new its simply offering a cheaper version of what Nvidia can offer.
In fact, Nvidia came out with a statement to say that DeepSeek was leveraging widely-available models and compute which is essentially another way of saying theres nothing new to see here, Chung said in an email to ConsumerAffairs.
So, while China has managed to cut down on the costs, I dont see how it changes anything on a fundamental level. The U.S. remains the objective global leader in AI development.
You may be asking, how does this all affect your portfolio? At this point, it may be hard to tell. Thats why its always a good idea to get advice from an objective and trusted financial advisor before making significant changes to your investments.
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Posted: 2025-01-28 15:44:57
