While cheap, powerful AI models are a great thing for companies looking to deploy AI, it's potentially terrible news for Nvidia.

Shares of the artificial intelligence (AI) chip leader have been crushed this year, but recent developments suggest the best is yet to come.

When a stock price moves, so does the value of the company. In the case of Nvidia, the company's cratering share price has resulted in as much as $600 billion of lost market capitalization. On the surface, this looks horrific. However, as it often is the case with investments driven by overwhelming emotions, there's more than meets the eye.

Alphabet is increasing its capital expenditures on AI investments.

Nvidia Corp.’s stock fell Monday as investors weighed the potential for tariffs to impact chip companies and continued to assess the fallout from DeepSeek. Shares of Nvidia slid 2.8% to rank among the worst performers in the PHLX Semiconductor Index The stock pared losses after President Donald Trump said he had agreed to pause the Mexico tariffs for a month.

Perhaps no stock exemplified the past year's artificial intelligence (AI) frenzy more than Nvidia (NASDAQ: NVDA). Shares of Nvidia were up nearly 90% over the past 12 months through the end of January.

Nvidia (NASDAQ:NVDA) stock received quite a shock last week when the Chinese tech company DeepSeek announced that it had successfully developed

Artificial intelligence (AI) has created tremendous opportunities for investors. Nvidia (NASDAQ: NVDA) has been one of the best-performing AI stocks so far. Demand for its data center chips used to train AI models has sent its shares up over 700% since the end of 2022.

Most AI compute has been driven by Nvidia chips, and we obviously have a deep partnership with Nvidia and will for as long as we can see into the future,” Jassy said on a cal