Nvidia shares slip as report says China's DeepSeek is designing its own AI chip
Nvidia shares fell after a report said Chinese AI developer DeepSeek is designing its own artificial-intelligence chip, raising the prospect of a new rival in a market Nvidia dominates. The report fanned concern that large customers may reduce their reliance on Nvidia processors. The stock remains one of the year's strongest performers.
Nvidia shares slipped after a report said Chinese artificial-intelligence developer DeepSeek is working on its own AI chip, raising the prospect of fresh competition in a market the US company has long dominated. The report suggested DeepSeek wants to reduce its dependence on foreign processors.
Investors have grown sensitive to any sign that Nvidia's largest customers could design alternatives in-house or turn to rivals. Several big technology firms are already developing custom silicon, and a credible Chinese challenger would add to that pressure. Analysts cautioned that designing a competitive chip and manufacturing it at scale remains difficult and time-consuming.
Despite the dip, Nvidia remains one of the year's best-performing large-cap stocks, buoyed by heavy spending on AI infrastructure. Traders will watch for confirmation of DeepSeek's plans and any details on manufacturing partners, which would determine how quickly a rival product could reach the market.
Read next
Samsung profit soars 19-fold but shares slump 6.9% on oversupply worries
Samsung Electronics said its profit jumped roughly 19-fold from a year earlier, driven by strong demand for AI memory chips. Even so, its shares fell 6.9% as investors worried about a possible oversupply and whether the AI spending boom can be sustained.
Nigeria orders probe of Meta, Google, X and AI platforms over alleged exploitation of local media
Microsoft cuts 4,800 jobs and shrinks Xbox in major restructure
New Zealand workers slow to adopt AI, but many hide how much they use it
