The market isn’t always rational.

Today, $NVDA dropped 17% (less after hours as of this writing) after DeepSeek-V2 trained an AI model for $7M—a fraction of what it cost before. Investors fear AI training is getting cheaper and Nvidia’s pricing power will suffer.

But here’s the catch: DeepSeek used Nvidia’s H800 GPUs.

Cheaper AI training = more AI adoption = more demand for Nvidia.
Inference (running AI models) still needs Nvidia’s chips.
Blackwell GPUs will drive the next upgrade cycle.
Overreaction? Probably.

Markets panic. Nvidia’s AI dominance isn’t going anywhere.