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Nvidia under spotlight after DeepSeek AI bombshell; here's the critical number that every Nvidia investor must track

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The FeedLast Updated: Feb 06, 2025, 07:28:00 PM IST

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Synopsis

Nvidia's stock dropped by 11% in 2025 after Chinese AI startup DeepSeek claimed to develop a high-performing language model for only $6 million, diverting investor interests. However, investors are suggested to pay attention to Nvidia's upcoming earnings report, especially their data centre revenue, as per The Motley Fool.

Nvidia under spotlight after DeepSeek AI bombshell; here's the critical number that every Nvidia investor must track

Nvidia had a stellar 2024, with the data centre business leading the charge. Everything changed in January 2025, when Chinese AI startup DeepSeek claimed that it had developed a high-performing large language model (LLM) for just $6 million, which is much lower than what big players like Nvidia spend.

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This AI bombshell shifted the focus away from Nvidia’s latest AI chip sales as some investors considered DeepSeek’s potential and invested in it. This led to an 11% decline in Nvidia stock thus far in 2025, as per reports.

Must keep an eye on Nvidia's earnings report

But while DeepSeek’s claims have made waves, there are still plenty of questions about the startup’s true impact. According to The Motley Fool, investors would be smart if they focused on Nvidia’s upcoming earnings report on February 26.

Before the DeepSeek news, all attention was on Nvidia’s impressive revenue growth, especially in its data centre segment. However, this rapid growth had started to slow down, and Nvidia's stock had soared alongside those sales.

As per The Motley Fool, if the hype around generative AI infrastructure starts to fade, as some have surmised from the DeepSeek news, the quarter-over-quarter growth in Nvidia's data centre revenue should quickly reverse.

In fact, their quarter-over-quarter growth has already started to stabilize in the mid-teens range, as per last quarter's data.

Key segments to focus

The key number to watch is how Nvidia’s revenue from data centres continues to evolve, as per The Motley Fool. This will be a major indicator of whether the company can bounce back from its recent stock dip, according to the report.

Beyond that, Nvidia's auto and robotics segment is another area investors should pay attention to, as per the report. Though smaller than the data centre business, it could be the next big growth driver for the company in the future.

FAQs

What caused Nvidia’s stock to drop in 2025?
DeepSeek’s claim of developing a high-performing AI model with just $6 million in funding has shifted attention from Nvidia, which led to an 11% stock decline, as per reports.

What’s the most important number for Nvidia investors to watch?
Investors should keep a close eye on Nvidia’s data centre revenue growth in the upcoming earnings report, as it will show if the company can recover from recent losses, reported The Motley Fool.

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