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The Dean of Evaluation says that NVIDIA shares may drown by 31 %. Here is to contradict the reason for Deepseek to fuel it at its highest level, instead.
Aswath DAMDARAN Professor of Sirn Business College at New York University. In particular, DAMODAran specializes in evaluation – after he wrote many books on this topic, and often publishes his models and expectations for the public. Over the years, Damodaraan has become known as the “Dean of Evaluation” between financial journalists and media figures.
Last week, DAMODARAN published new expectations about it Nafidia(Nasdaq: nvda) – Calling for a decrease in 37 % in the share price of the current levels (as of February 5).
Below, I will detail the logic of DAMODARAN to help explain the reason for his call for such a decrease. From there, I will give my opinion why I am not fully compatible with his homogeneous expectations.
Now, you are likely to be aware of the latest point of discussion of artificial intelligence-a Chinese emerging emerging Dibsic. Deepseek is the latest company that appears in the world of artificial intelligence, claiming to be developed for game change applications for a small part of the cost used to build main models of Openai or anthropor.
In DAMDARAN analysis, it is reported that Deepseek “changed the story of artificial intelligence” that will create a market of synthetic artificial intelligence, with a part of low -grade artificial intelligence products that are a very commodity and competitiveness and one of the distinctive products. “
On the surface, I understand what DAModAran gets. If the keyword “if”) has built an equal platform with or superior intelligence models and did it with less expensive infrastructure, the NVIDIA position as a king of the world of chips will appear at risk.
For me, the above dispute is still more theory than anything else. It seems that every hour, it publishes more stories about Deepseek-many of which are now alleged that young people were With much more funding than the first $ 6 million that he demanded. If this is the case, NVIDIA has less anxiety.
But in a world in which Deepseek was built much less than funding compared to what was destroyed in Openai and its voices, I still do not see such an idea as a bad thing for NVIDIA. The reason in reality is lined with the DAModAran point of solid programs that become a commodity.
Currently, it is well known that many NVIDIA customers include cloud companies like Microsoftand alphabetAnd Amazon. Moreover, large technology giants such as Definition platforms and Timing It is also some of the largest adopters in Nafidia. What is it also It is known that many of these companies invest heavily in internal programs and work with low -cost service providers, such as Advanced small devices.
The logical basis behind these investments is not that NVIDIA chips restrain expectations, but because these companies are looking for ways to diversify their own platforms and create opportunities to save costs in this process. With more chips enter the market, these products will become a somewhat commodity anyway. In my opinion, Deepseek does not change the narration that its chips become a product of goods at all – it enhances the idea.
Photo source: Getty Images.
The only field that I will recognize seems a bit foggy is the NVIDIA growth path. I think Deepseek’s arrival causes the uncomfortable idea (but likely) that the growth of NVIDIA can start slowing down at a meaningful pace one day.
While such fears are legitimate, it still seems that the large technology in the first line at the Nafidia threshold is currently. Recent comments from the CEO of META Mark Zuckerberg as well as comments from Microsoft Command indicate that investing in the infrastructure of Amnesty International will continue in the foreseeable future.
It is difficult to determine the extent of this spending specifically for NVIDIA, but I am very confident that the leading manufacturing company will remain essential in the best companies in the world in the future.
What is ironic is that although the largest NVIDIA customers have publicly mentioned that the budgets of their capital expenses (CEPEX) are still strong, the shares are still selling.
In all honesty, I will not be surprised if NVIDIA shares continue to experience declines until the company’s reports on its profits on February 26. By that time, I think investors and analysts will have sufficient details that can indicate what artificial intelligence spends all of the prospects of near and long -term.
I contradict that during the NVIDIA call in the fourth quarter, the company will lead one point above all: the demand for its chips-including the latest and most expensive structure-remains strong and must continue this way for some time.
As such, I will not be surprised to see NVIDIA shares begin to spin an epic manner. Currently, I see declines in NVIDIA shares as incredible purchase opportunities and I think the stock will rise much higher than its place today.
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the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … Nvidia was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 788,619 dollars!
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Randy Zuckerberg, former Director of Market Development and Speak for Facebook and Sister to Meta Platforms, Mark Zuckerberg, member of Motley Fool Board of Directors. John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. Adam Sepataco He has positions in Alphabet, Amazon, Meta Microsoft, Nvidia and Tesla platforms. Motley Fool has positions in advanced advanced devices, alphabet, Amazon, Meta, Microsoft, NVIDIA, and Tesla. Motley Fool recommends the following options: Long January $ 2026 $ 395 on Microsoft and Short January 2026 $ 405 calls on Microsoft. Motley deception has Disclosure.
