Nvidia Faces Rival AI Challenge Amid High Valuation

Nvidia, the leading AI hardware provider, is facing a new challenge from DeepSeek, a rival AI company that has updated its AI model V3-0324. Despite Nvidia's impressive stock surge of over 1,700% in the past five years, the company's valuation is high, and the arrival of DeepSeek and other open-source AI competitors introduces a new risk factor for investors. Nvidia's fourth-quarter fiscal 2024 earnings surpassed expectations, with EPS of $0.89 and full-year revenue of $130.5 billion. Analysts remain bullish on Nvidia, with a consensus price target of $177.19, implying a 28% upside.

Nvidia Faces New AI Rival DeepSeek

DeepSeek has updated its AI model V3-0324 which could challenge Nvidia's position as a leading AI hardware provider. Nvidia's stock has surged over 1,700% in the past five years but has experienced a moderate pullback in 2025. The company's valuation is high, trading at 21.3 times sales, and its profit margin is 55.85%. Analysts are bullish on Nvidia, with a consensus price target of $177.19, implying a 28% upside. However, the arrival of DeepSeek and other open-source AI competitors introduces a new risk factor for investors to consider. Nvidia's fourth-quarter fiscal 2024 earnings surpassed expectations, with EPS of $0.89 and full-year revenue of $130.5 billion.

Key Takeaways

• Nvidia is facing a new challenge from DeepSeek, a rival AI company with an updated AI model V3-0324.
• Nvidia's stock has surged over 1,700% in the past five years but has experienced a moderate pullback in 2025.
• The company's valuation is high, trading at 21.3 times sales, with a profit margin of 55.85%.
• Analysts have a consensus price target of $177.19 for Nvidia, implying a 28% upside.
• Nvidia's fourth-quarter fiscal 2024 earnings surpassed expectations, with EPS of $0.89 and full-year revenue of $130.5 billion.
• The arrival of DeepSeek and other open-source AI competitors introduces a new risk factor for Nvidia investors.
• Nvidia's position as a leading AI hardware provider is being challenged by the updated AI model from DeepSeek.
• The company's high valuation and profit margin make it a subject of interest for investors and analysts.
• Despite the challenges, analysts remain bullish on Nvidia's prospects.
• The emergence of new AI competitors could potentially impact Nvidia's stock price and future growth.

Sources

• DeepSeek Just Updated Its AI Models. How Should You Play Nvidia Stock Here?