DeepSeek, a Chinese chatbot that took the world by storm with its immense capabilities, despite limited resources, forced the AI sector, especially, the one in the United States to take notice.
One of the companies to be impacted early on in the chaos was Jensen Huang-led Nvidia. The chip-designing company, which has been at the centre of the AI revolution, took the biggest hit, given its stakes in the sector's growth.
However, at the time of the market meltdown, that came to pass only a few weeks ago, the company had assured its investors, that the DeepSeek experience shows that the need for chips will only increase.
Reasons For Optimism
And now, it seems, that those words are not far from the truth or reality. A new data set has suggested that the demand for these advanced chips will increase, thereby increasing optimism surrounding companies like Nvidia.
Nvidia is a market leader with its Blackwell chips that have been at the pinncale of the market.
In addition, recently the likes of Meta, Amazon, and Alphabet, despite their setbacks, have doubled down on their commitment to striking gold in the AI rush.
Collectively, these companies have vowed to 100s of billions of dollars to their AI project. In addition, the push from the incumbent Trump administration has further added to a rise in optimism.
Nvidia Shares On A Roll
This has had an impact on the fortunes of the Nvidia as well. On gained 4.71 per cent or USD 6.08 in just the past 5 trading sessions alone.
In addition, the company made major gains in the trading session on Thursday as well.
The stock of the chip company closed in green with gains of USD 4.15 or 3.16 per cent, taking the overall value of Nvidia stock to USD 135.29. The company shares' 52-week high stands at USD 153.13.
