Nafidia(Nasdaq: nvda) The shares were crushed on January 27, as it decreased by 17 % in one session after a new wave of doubts appeared in the foreground after the effective artificial intelligence model that was revealed by the Chinese company Deepseek.
Dibsic’s claim that It trained its R1 model for only $ 6 million It has made enough competition to perform the most expensive OPenai thinking model. NVIDIA shares have made great gains over the past two years, as their revenues and profits have grown significantly thanks to the prosperous demand for expensive graphics cards that are used for training and publishing artificial intelligence models.
Therefore, Deepseek’s demand to do more with the least new concerns about the potential demand for NVIDIA chips in the future. However, this is not the only factor that weighs on NVIDIA stock recently. The potential restriction of NVIDIA chips to international destinations and the relative slowdown in spending on Amnesty International’s infrastructure are also issues (now aggravated by Deepseek).
However, pressing the panic button and selling NVIDIA on this news may not be a smart step. After all, there is enough back winds that indicate that they may be able to restore Mujo again and up to $ 200.
It seems that concerns about the slowdown in the infrastructure of Amnesty International has been developed on the basis of modern advertisements made by the main stakeholders in this field. Firstly, Microsoft It announced that its capital expenses (CPEX) will raise 43 % in the current fiscal year to 80 billion dollars, as it looks forward to building more artificial intelligence data centers.
now, Definition platforms It also announced that it would increase Capex 2025 by approximately 50 % over the estimated expenses for the past year. Also, the advertisements of these technological giants were accompanied by a great development in the White House. Softbank, Openai, OracleAbu Dhabi -based MGX has announced that it will “start publishing $ 100 billion immediately” to build Amnesty International Infrastructure in the United States as part of the Stargate project.
Of course, you may wonder whether the low training cost of Deepseek will lead NVIDIA customers to reduce their spending on their chips. It is too early to jump into a conclusion, but there is a possibility that the demand for data center graphics cards in NVIDIA is because the competence that Deepseek offers can encourage more companies to build costs for costs in terms of cost, which means that it is likely to remain. The demand for demand is strong.
Therefore, there is a possibility that the spending that focuses on artificial intelligence by the United States Titans in 2025 will be above again. This would pave the way for NVIDIA to maintain the growth of revenues and distinguished profits that the company has been registered over the past two years.
A great reason that NVIDIA is the most likely beneficiary of artificial intelligence boasting in 2025 because it continues to control the market for data center processing units (GPU). The company controls an estimated 70 % to 95 % of the GPU Center Data Center AI according to different estimates, although there is a good opportunity for its share to be at the upper end of this range.
That is because their competitors are like AMD and Intel I barely managed to make a dent in the artificial intelligence chips market. AMD is the closest NVIDIA competitor in the GPU Center Data Center AI, and its estimated revenues for 2024 of the sales of these chips are a small part of the potential NVIDIA revenue from this field. Things are worse in Intel, where the company is expected to decrease from the target of AI’s $ 500 million chips.
Therefore, NVIDIA is on the right path to the corner of most additional spending on artificial intelligence chips this year. Better, doubling the advanced packaging of the chips by the NVIDIA Mabredia partner Taiwan manufacturing semiconductors It should be allowed by the previous one to fulfill the wonderful demand of technology giants. As a result, there is a good opportunity for NVIDIA profits growth in the fiscal year 2026 (which will start soon and coincide with 11 months of 2025) higher than analysts expect.
This may be the reason why this semiconductor stocks can jump to $ 200 this year.
NVIDIA shares need to jump 55 % of current levels to $ 200. Consent estimates expect a 50 % increase in NVIDIA profits in the fiscal year 2026 to $ 4.45 per share. Highway in the street indicates a 101 % jump in the end result.
However, NVIDIA can overcome the average profit growth estimate for the new fiscal year against the background of additional spending on the infrastructure of the absence of artificial intelligence and improving the capacity by TSMC. Assuming that it achieves a 75 % jump in the summary, NVIDIA can report $ 5.16 per share in the fiscal year 2026. Application A. Multiple front profits Of 40 (in line with the average company’s average profits for a period of five years) to the expected profits for the financial year, it will be enough to help NVIDIA shares of up to $ 200.
Moreover, the double -profit reinforcement is less than the multiple late stock profits. Therefore, artificial intelligence arrow can make healthy gains even if it is trading with a discount to move forward.
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*The stock consultant dates back from January 27, 2025
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. Hald Johann He has no position in any of the mentioned stocks. Motley Fool has positions in advanced Micro devices, Intel, Meta, Microsoft, NVIDIA, Oracle, and Taiwan Seiconductor Manufacturing. The Motley Fool recommends the following options: since January 2026, $ 395 on Microsoft, February 2025, $ 27 on Intel, and short in January 2026 $ 405 calls on Microsoft. Motley deception has Disclosure.
