Nvidia (NASDAQ: NVDA) Actions were quite Nosedive. 17% decrease in one day won most of the headlines, but the shares fell by 22% in the lowest level, after starting 2025 at the highest level. The price of the 116 USD shares was one of the talking heads that we would never see again. Is it time to buy a decrease before novel high ups? Or maybe he may have further breakdown?

You have dominance

To understand the dismissal of NVIDIA, it is worth taking a moment to assess how dependent enormous language models (LLM) are on fries.

After starting ChatgPT, Nvidia created the best GPU for him. He had an advantage. And this caused about 90% of the NVIDIA systems used.

But Chatgpt made his debut if you can believe it, almost two and a half years ago. Tony of competing LLMS hit the market like ClaudeIN GrocAND Twins. Certainly Nvidia’s competitors had the opportunity to catch up?

Well, not really. It is believed that the percentage of nvidia systems is still about 85%. Nvidia is in the middle of the track, while her competitors did not even finish tie their shoelaces.

This is a kind of seemingly unsistable lead, which easily explains why NVIDIA shares have multiplied 11 times since LLMS appeared on the stage. AMD The shares did not even double. Intel Actions fell by 38%. Krikey.

Why did stocks fall?

So what’s the decline? A 22% decrease is not sniff. Is this a sign that Nvidia’s dominance has a goal in sight?

Well, the basic story is that the Chinese startup called Deepseek created LLM for a fraction of the costs of all others. The right point for NVIDIA is that it does not need so many systems that could ensure long -term dental of sales.

The counterargument is that it is a wide open door to a wide reception of artificial intelligence. We can see custom models operating on smartphones that we all have in our pocket.

In this case, Nvidia may go to the top again. After all, their systems are still the best in the classroom. Hubbub around Deepseek can ultimately augment sales.

My opinion

Personally, I do not think that the investment case was very harmed in the last week. The investor of the lack of exposure to the benefits of AI may want to consider buying at a reduced price.

What is about my decision is the valuation-the price-profit ratio of 48 with a p/e indicator of 30. They are not economical, although they are not astronomical for a company with such good growth prospects.

The problem is that earnings have been increased thanks to gold AI. It is said that most of the sales come from four or five technology companies. In combination with my exhibition in other areas, it seems too much risk to me.