We recently compiled a list of the 15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other semiconductor stocks.
The semiconductor industry has always been a battleground for technological development, though lately, it has turned into a full-scale battle. The US and China are not only vying to outpace each other in the race to achieve AI superiority but are also actively trying to slow each other down.
The US for instance has placed a number of export restrictions on global firms selling semiconductor technologies to China. Many leading US companies have had to deal with declining China sales as a result of these restrictions. On the other hand, China is trying its best to come up with technologies that compete with those in the US, despite restrictions.
The emergence of DeepSeek AI at the end of January was a wake-up call for the Americans, with China building its latest AI model for a fraction of the cost that the US counterparts spend on their models. While the validity of these claims is debatable, it does show how far China has come when it comes to competing with the US.
As a result of the DeepSeek AI announcement, many semiconductor stocks took a big hit. Two weeks later, some of the stocks started recovering and investors started feeling comfortable with the thought of continued technological dominance by the US. We therefore decided to look at the semi-stocks that were making a comeback from the DeepSeek dip.
To come up with the list of 15 semiconductor stocks making a comeback from DeepSeek AI dip, we only considered stocks with a market cap of at least $10 billion that beat the S&P 500 in the last 5 days of trading.
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
NVIDIA Corporation (NASDAQ:NVDA) is a technology company that focuses on designing and manufacturing Graphic Processing Units and computing & networking hardware. The company operates through the graphics and compute & networking segments. The stock is up 6.81% in the last week against the S&P 500’s 1.13% gains.
NVIDIA Corporation (NASDAQ:NVDA) is set to announce its earnings on 26th February, an event that the market is eagerly anticipating. Evercore recently added the company to its Tactical Outperform list in anticipation of the earnings. The firm believes Nvidia is 5-10 years ahead of everyone else in the market, an advantage that will continue to help the company dominate in the future.
The company’s stock had a strong reaction to the DeepSeek AI news but with time, investors have digested the news well and are confident Nvidia’s advancement in the GPU segment is neither likely to be challenged anytime soon nor becoming irrelevant because cheaper AI models are emerging. NVIDIA Corporation (NASDAQ:NVDA) derives its strength not just from its high-quality products but also from its unique ecosystem, which won’t be challenged by the emergence of DeepSeek or similar technologies.
South Korea just announced to buy 10,000 GPUs from NVIDIA Corporation (NASDAQ:NVDA) this year, which goes to show that countries still want the high-end GPUs to fulfill their computation needs. If the earnings next week beat analyst estimates, the market may finally reward investors who’ve been frustrated by the sideways stock movement since the last two quarters.
Overall NVDA ranks 5th on our list of the semiconductor stocks that are making impressive comeback from DeepSeek AI Dip. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
