When the volatility of the market decreases, as happened in the last five days, experienced investors and traders should think about what can happen next to cause a surge of volatility, for example, an unusual volume of trading or activity in the options trade. An unstable event of this week, which will come to the end of the first month of 2025, will occur around the world from the Asian Center.
In China, a group of developers released their own version of the chat system based on artificial intelligence, such as Openai Chatgpt. This new system, called DeepSeek, apparently has twice as much computing power at a much lower cost, which seriously challenges the current state of demand and supply of semiconductors in today’s market.
Nvidia today
- 52-week range
- $ 60.70
▼
153.13 US dollars
- Dividend yield
- 0.03%
- Price/profit ratio
- 46.40
- Target price
- $ 165.23
The market responded to this news of the sale of one of the most promoted companies in the technological sector today.
Shares NVIDIA company Nasdak: NVDA At the beginning of the new trading week, more than 10%fell by more than 10%, which led to the fall of other shares and indices, since the company has become the largest asset in some portfolios in all directions.
Investors will understand why this is happening and what the whole situation is likely to end when the risks are thrown aside, and the possibilities will be in the spotlight.
Is Deepseek really better?
A simple answer to this question is a definite “yes” if investors trust information and statistics coming from China. Another criterion, probably more reliable, can be obtained by testing the product in practice. Now that DeepSeek has become the most loaded application in the world, it is likely that these statements are not false.
Given this, there is a serious conflict in the industry as a whole: is it possible to make more with lower costs. This proposal comes from China, so the price behavior of the market rewards some technological companies in this country, while damaging US technological actions.
Kraneshares csi china Internet etf today
Kraneshares csi China Internet ETF
As of 13:49 East time
- 52-week range
- $ 22.98
▼
$ 39,17
- Dividend yield
- 1.65%
- Assets under the control
- 5.48 billion dollars
For example, Kraneshares csi China Internet ETF NYSEARCA: Kweb On the other hand, it grows by more than 1%, while the NASDAQ-100 falls by more than 1%; Another vivid example Alibab group New York Stock Exchange: Baby Growth by more than 2.2% in one day, despite this bearish view of the shares of technological companies as a whole.
Such a price movement may mean that expenses and capital intensity assessments could evade these giant companies. Looking at the recent manufacturers (PPI) price index and PMI reports in the production sector, investors will understand that the demand for semiconductors and chips has faded into the background.
However, NVIDIA and other leading companies continued to produce inventory as if the demand cycle was still on the upper boundary of the range. According to the laws of the economy, an excess of proposal will lead to the necessary adjustment. That is why Deepseek, perhaps, decided to start now, and not earlier, knowing that the data will be in their favor.
Is there a way out?
For those who want to play their role in this situation, the best that can be done is to protect portfolios from all this volatility and focus more on the optimal ratio of risk and profit. One action in the United States that could meet these criteria is Advanced Micro Devices Inc. Nasdak: AMDSince today several factors give him preference to NVIDIA.
Advanced micromegraments today
Advanced micromegraments
- 52-week range
- $ 114.31
▼
$ 227.30
- Price/profit ratio
- 102.66
- Target price
- $ 176.33
Firstly, the price guidelines of Wall Street analysts prefer Advanced Micro Devices. The consensus is set at $ 176.3 per share, which involves growth potential up to 50% of today’s price. Compared to NVIDIA, its target price of $ 164.6 per share involves much less growth potential by 29.8% compared to today’s levels.
Moreover, some analysts can adjust their NVIDIA estimates after this bold achievement and deepseek statements. Secondly, the fact that NVIDIA shares are sold by more than 10%, while Advanced Micro Devices managed to restrain the fall within 4%, should tell the investors everything they need to know.
It is here that the ratio of risk and remuneration between these two companies becomes important, since Advanced Micro Devices shares are traded only 54% of their 52-week maximum, while NVIDIA shares are at a much higher price-83% of its 52-week Maximum. . Thus, investors could buy a semiconductor failure using the best schemes to date.
But for those who believe that DeepSeek can do all this, given the Chinese technological company such as Alibaba, with its growth potential of 62.3%, based on the assessments of Macquarie analysts, and their target price of $ 145 For the action, will be a great choice.
Moreover, DeepSeek will rely on cloud computing services, similar to those that Alibaba plans to expand in the coming months. In general, the answer remains the same: at the moment there is evidence in favor of the statements of Deepseek and against the sky -high assessment coefficients, which NVIDIA called for.
Before considering NVIDIA, you should hear it.
MarketBeat tracks the most rating and effective Wall Street analysts daily, as well as promotions that they recommend to their customers. Marketbeat has identified five shares that leading analysts quietly advise their customers to buy now before the wider market has gained popularity … and Nvidia was not on the list.
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