Nvidia, Deepseek and the AI reality check: 4 takeaways for investors

If you blinked, you might have missed the absolute market carnage Nvidia endured this week.

A 17% plunge erased a staggering $589 billion in value in a single day, only for the stock to roar back almost 9% the next session.

The culprit? A Chinese AI start-up, DeepSeek, that sent Silicon Valley into full-on existential crisis mode.

Let’s break down the four major takeaways from this AI-fuelled rollercoaster and what it means for investors.

AI isn’t a one-horse race

Wall Street had a full-fledged panic attack at the mere thought that someone other than Nvidia might be doing impressive things in AI. The idea that the US might not have an absolute AI monopoly rattled investors, but competition breeds innovation. The AI revolution isn’t a zero-sum game where only one company gets to profit.

DeepSeek’s breakthrough should serve as a wake-up call: the AI gold rush is global. Smart investors should be watching who else is making moves, not just clinging to the Nvidia narrative. If anything, this week’s sell-off was an overreaction, and the bounce-back proves that Nvidia isn’t suddenly doomed.

Volatility is normal

A 17% drop followed by a 9% surge? That’s a full-blown stock market soap opera. But if you’re in AI stocks, buckle up. The market is hypersensitive to any news, rumours, or existential threats (real or imagined).

For long-term investors, this means opportunities. Every panic-driven sell-off creates a buying window, and every euphoric rally invites caution. The key is to stay disciplined, not reactionary. AI’s dominance isn’t a question of “if” but “which companies will lead.” Nvidia remains the heavyweight champ—for now—but the challengers are stepping into the ring.

US-China AI tensions are a mega-theme

DeepSeek’s rise isn’t just about innovation, it’s about geopolitics. The US has tried to choke China’s AI ambitions by restricting chip exports, yet here we are: a Chinese start-up rattled the biggest AI stock in the world. This fight isn’t over.

Investors need to recognize that AI is the new arms race. US firms will throw more money, more lobbying, and more hype at staying ahead. Meanwhile, China will push ahead despite restrictions, creating global AI rivalries that move markets in a way we haven’t seen since the early days of Big Tech.

So, don’t bet against AI, but also don’t assume US dominance is untouchable. Nvidia’s comeback proves the market is still bullish on its leadership—for now. But smart investors will be watching the next moves from China, Washington, and Silicon Valley very, very closely.

Get advice

If this week has taught us anything, it’s that the AI sector is high-stakes, high-speed, and high-risk. You don’t want to be making investment decisions based on headlines alone. With AI stocks, timing matters. Strategy matters. And getting expert financial advice isn’t a luxury—it’s a necessity.

Long-term trends may favour AI, but short-term swings can be brutal. Whether you’re doubling down on Nvidia, diversifying into emerging AI plays, or wondering if this is all just another hype cycle, talking to a financial adviser who actually understands tech markets is the smartest move you can make.

This week was a gut check for AI investors. If you can’t handle a little turbulence, maybe AI stocks aren’t for you. But if you see opportunity in chaos, this sector is where the action is.

And let’s be honest—if you’re not paying attention to AI, what are you even doing?

Nigel Green is deVere CEO and Founder