---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/26808675.md"
description: "$NVIDIA(NVDA.US) returns to the most basic simplified formula: AI = data + algorithm + computing power.In the open-source world, data doesn't differ much among companies, and algorithms are similar. Previously, major giants mainly competed in computing power (GPU).Now, with the emergence of DeepSeek, there's a significant wave of competition in algorithms, causing stock price fluctuations for giants focused on computing power.DeepSeek reduces computing power demand to 1/10 of traditional methods. This means:1) Short-term market reliance on top-tier GPUs drops significantly.2) Short-term hardware deployment scales down substantially.3) Short-term overall computing power costs decrease sharply.For the semiconductor manufacturing industry, which heavily depends on hardware iteration cycles, this shift in technological approach—from "stacking GPUs" to "optimizing algorithms"—is significant.Short-term impacts are felt by NVIDIA and AMD due to reduced computing power demand.However, DeepSeek is open-source, making its algorithms easily replicable by others. Additionally, DeepSeek isn't a multimodal model, so it has usage limitations.It's hard to imagine how terrifying the models trained by GPT or Claude would be with the same algorithm and equivalent computing power.Moreover, there are rumors that DeepSeek uses restricted H100 GPUs, meaning no matter how advanced the algorithm is, GPUs are still required.For example, to make high-speed trains faster, there are two approaches: better railways and trains (computing power) or more efficient stations and crew systems (algorithms). When the latter becomes similar, the competition still revolves around computing power.So, the conclusion is: short-term bearish for NVIDIA, but long-term, computing power remains a fundamental demand and won't change.As for how much the stock price will drop, I don't know. What I do know is that if it drops too much, it might present an opportunity (but risk control is essential)."
datetime: "2025-01-27T10:15:46.000Z"
locales:
  - [en](https://longbridge.com/en/topics/26808675.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/26808675.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/26808675.md)
author: "[复利魔方3650](https://longbridge.com/en/profiles/7185361.md)"
---

# $NVIDIA(NVDA.US) returns to the most basic simplif…


### Related Stocks

- [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md)

## Comments (42)

- **Beaulo · 2025-01-30T01:02:18.000Z**: Awesome
- **司波蛋炒饭 · 2025-01-27T14:24:03.000Z · 👍 1**: It makes sense, but I don't quite agree. Stock price is the reflection of performance + expectations, and this kind of algorithmic improvement is undoubtedly a long-term suppression of performance.
  - **复利魔方3650** (2025-01-27T15:17:56.000Z): AI is developing too fast, no matter what kind of progress, hardware is indispensable.
  - **司波蛋炒饭** (2025-01-27T15:22:02.000Z): Yes, but 'indispensable' and 'don't need that much' are two different things. The high P/E ratio reflects expectations for this stock's future performance, and this model will still have a significant
- **天蝎投资学习历程 · 2025-01-27T14:04:38.000Z**: The Americans are actively squeezing the bubble themselves.
- **夏琳 · 2025-01-27T14:00:46.000Z**: All are amazing people
- **稳持能赢 · 2025-01-27T13:27:37.000Z · 👍 1**: Let me make an appropriate analogy: just like how excessive performance in smartphones leads to longer replacement cycles, significantly reducing phone sales. So its impact on Nvidia is not just short-term but also medium-term. It's estimated that for the next two to three years, the impact will per
  - **稳持能赢** (2025-01-27T13:28:21.000Z): So I advise everyone not to think about buying the dip, just boldly short it.
- **长风破浪Cyd · 2025-01-27T12:12:40.000Z**: It shows that people still think the valuation is too high. It's good to have an adjustment to stabilize it.
- **orc · 2025-01-27T11:58:30.000Z**: Is NVIDIA's technological barrier so high that it's difficult to imitate or even surpass?
- **alwayswin · 2025-01-27T11:49:33.000Z · 👍 1**: The increase in GPU usage has diminishing marginal effects in model training, not a linear relationship.
  - **alwayswin** (2025-01-27T11:51:28.000Z): But if the price drops excessively, there is indeed an opportunity, after all, the market can make mistakes, and Nvidia is a rare find.
- **长长长长长长长 · 2025-01-27T11:39:33.000Z · 👍 13**: The moderator is sharp. I was talking with friends this afternoon about how much costs have decreased in the telecommunications industry, from the telegraph era to the internet age. Back then, telegrams cost 3 cents per character, but now, how much does it cost to transmit several gigabytes of data?
  - **XXYY** (2025-01-27T12:27:34.000Z): You can't say that. In the past, there was only text, but now there are images and videos, so the price is definitely different.
  - **JasonCaicy** (2025-01-27T12:39:28.000Z): Similarly, the application fields of AI will expand from simple text to images, videos, and more advanced domains.
- **大美小白马 · 2025-01-27T11:27:51.000Z · 👍 1**: I agree too. Software can be copied by everyone, in the end it all comes down to hardware competition. Without hardware, latecomers may catch up but will always lag behind.
- **Libertyli · 2025-01-27T11:26:45.000Z · 👍 1**: Don't enter the market casually due to short-term negative news. Wait for the market to digest it properly.
- **Wxy · 2025-01-27T11:01:49.000Z**: What I'm curious about is: Computing power will definitely increase, but perhaps most of the increase will be in small, application-side, user-end computing power. However, Nvidia doesn't seem to be as strong as AMD and Broadcom in these areas.
- **给点豆吧 · 2025-01-27T11:01:11.000Z · 👍 8**: The so-called "great leap forward" era was just a flash in the pan
- **以帅服人 · 2025-01-27T10:54:00.000Z · 👍 2**: I have a question: since it's open source and the two are becoming similar, if one company trains it, other companies can replicate it. Doesn't that mean the demand for computing power hasn't increased either?
  - **波比勇闯天涯** (2025-01-27T12:20:55.000Z): It will accelerate the development of AI, lower costs, lower barriers, and make various applications and models emerge faster. This is the increased demand.
  - **云深处** (2025-01-28T06:48:08.000Z): Breaking the U.S. high-computing power blockade, the story can't be hyped anymore
- **逐梦人_meRaJQ · 2025-01-27T10:51:50.000Z · 👍 7**: You asked it what 789,456,123×123,456,789 equals, and the result was wrong. Yet they still brag about it like it's the best thing ever.
  - **l91liliang** (2025-01-27T11:31:09.000Z): To be honest, it's correct now.
- **新用户_qw3D8n · 2025-01-27T10:49:45.000Z**: Adding insult to injury
- **水沝淼㵘9527 · 2025-01-27T10:39:43.000Z · 👍 8**: Yes, short-term negative factors
- **勇者仁心 · 2025-01-27T10:38:57.000Z · 👍 2**: Start psychological massage💆
- **华尔街福娃 · 2025-01-27T10:29:38.000Z · 👍 27**: I share the same view as you. Open source means replicating the algorithm, improving it, and pairing it with stronger computing power, which will actually accelerate AI development. I'm even bullish, it's just that the current market sentiment is causing panic.
  - **云深处** (2025-01-27T12:45:03.000Z): It's always the Americans who create panic for us, but this time it's the Chinese who should create panic for the Americans. The tables have turned!
  - **临** (2025-01-27T13:17:07.000Z): Are you sure it's not the Americans creating panic for themselves every time? Last time it was also the US recession trade 😂
  - **云深处** (2025-01-27T14:02:24.000Z): Isn't everyone hyping up the myth that US stocks will never fall?