The emergence of a small Chinese artificial intelligence (AI) company called DeepSeek initially put a giant hole in the U.S. stock market. Tech stocks -- particularly those connected to the AI trend -- got crushed,

DeepSeek Launch, Intel’s Price Cuts The unveiling of China’s new resource-light AI model, DeepSeek, roiled the U.S. big semiconductor stocks earlier this week.

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.

Perhaps no stock was more profoundly affected by the news from DeepSeek than Nvidia (NASDAQ: NVDA). In a sense, DeepSeek validated its dominance by announcing its H800 accelerators trained its model for less than $6 million.

Discover why NVIDIA's stock dropped and how U.S. tariffs on Taiwanese semiconductors are reshaping the tech industry. NVIDIA stock

DeepSeek has launched an AI model that was reportedly developed with significantly less computational power than traditional methods. Shares of Nvidia are under pressure amid concerns that DeepSeek's methods may undermine demand for its high-performance GPUs.