NVIDIA

Is NVDA's $600 Billion Drop Due to DeepSeek?

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Is NVDA's $600 Billion Drop Due to DeepSeek?
From my observation, the answer is no. NVIDIA had been experiencing continuous breakout growth for several months, reaching a double-top peak at the same time the AI wave was at its strongest. This led to the company's valuation multiplying several times from its lows.

The $140+ range was around the peak valuation for NVDA. Therefore, in the next few months, a correction below $100 is inevitable. Even without DeepSeek, a similar event would have triggered this correction, as it is a natural phase for a company that has experienced such rapid and sustained growth. Framing it as an AI-driven narrative simply makes the situation more convincing.

Looking at the chart, NVDA will likely top out, correct downward to form a bottom, then rebound to a new high before the larger 3M cycle correction begins.

Penafian

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