The rapid rise of cost-effective AI models produced by DeepSeek has sent shockwaves through Silicon Valley as the China-based startup has done more with less. It also has triggered concerns about Nvidia, a California company that produces advanced chips for AI development, and prompted broader questions of America's competitiveness in the tech race.
Nvidia, which controls an estimated 90% of production of the graphics processing units powering A.I. applications, has become the crown jewel of the stock market and one of the so-called Magnificent 7 stocks that are the bedrock of many Americans' retirement portfolios. Nvidia alone accounted for about 30% of the S&P 500's 15.5% year-to-date return, as of June 25, 2024.
