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.

Since the start of 2023, Nvidia 's (NASDAQ: NVDA) stock has gained an astronomical 906% as of the time of writing. It's also right around its all-time high right now, but these two facts may scare some investors off. The common thought is, "Nvidia has risen so much already; how can it increase more?"

Because Nvidia is still growing its revenue rapidly, using trailing earning metrics can give a false impression of where the company is headed. However, they're also useful in this case because its future had a wrench thrown into it thanks to DeepSeek's breakthrough.

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.

While the demand is there, it's clear that's not the sole reason why Nvidia's RTX 50 series is impossible to find in stores. Many retailers received fairly low stock quantities, as Nvidia reportedly experienced manufacturing issues.

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.

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.