Artificial intelligence (AI) is evolving faster than ever and two key players, NVIDIA and DeepSeek, are leading the way. While these names might sound like something out of a sci-fi movie, their impact is very real, even if you don’t realize it. Whether you’re gaming, streaming videos, using AI chatbots, or even investing, these technologies are shaping the world around you.
But where did they come from and how have they shaken up the tech sector and financial markets? We break down what NVIDIA and DeepSeek are, how they affect your daily life, and what they mean for the future of work, AI, and investing.
How NVIDIA Went From a Gaming Company to an AI Giant
NVIDIA was founded in 1993 and started as a company making Graphics Processing Units (GPUs) for video games. These chips allowed games to render smoother animations and more realistic graphics, revolutionizing the gaming industry. For years, NVIDIA was known primarily as a gaming hardware company, competing with AMD and Intel in the graphics card market.
In the 2010s, a breakthrough changed everything—researchers discovered that NVIDIA’s GPUs weren’t just great for gaming; they were perfect for AI computing. Today, its technology powers some of the most advanced AI systems in the world. These high-performance chips are the backbone of AI, helping machines process data and learn at lightning speeds.
Everyday Impacts of NVIDIA’s Technology
As AI research took off, companies realized they needed massive amounts of computing power to train complex machine-learning models. Traditional processors (CPUs) were too slow, but GPUs—designed for parallel processing—were ideal for AI workloads.
NVIDIA capitalized on this shift by developing CUDA (Compute Unified Device Architecture), a software platform that allowed developers to use GPUs for AI, scientific research, and data. Even if you’re not a gamer, you’re still using technology powered by NVIDIA’s hardware. Here are just a few ways:
- Faster Streaming & Better Graphics – If you watch Netflix or YouTube in 4K, chances are NVIDIA’s tech is helping process that video smoothly.
- AI Chatbots & Assistants – AI models like ChatGPT (and DeepSeek) run on NVIDIA-powered supercomputers.
- Self-Driving Cars – Companies like Tesla use NVIDIA’s AI chips to help vehicles “see” the road and make decisions.
- Medical Breakthroughs – AI is helping doctors detect diseases earlier and develop treatments faster, thanks to NVIDIA-powered systems.
NVIDIA’s Stock (NVDA) Has Been One of the Biggest Winners in AI
- 2012-2015: Deep learning researchers use NVIDIA GPUs to train neural networks, leading to a breakthrough in AI image recognition. In 2015, NVIDIA’s stock was approximately $0.80 per share.
- 2016-2020: AI and cloud giants like Google, Amazon, and Microsoft invest in NVIDIA-powered data centers.
- 2023-2024: The AI boom, fueled by ChatGPT and other models, sends demand for NVIDIA’s chips skyrocketing. The all-time high NVIDIA stock closing price was $149.43 on January 06, 2025.
- 2024: NVIDIA briefly hit a $2 trillion market cap, making it one of the most valuable companies in the world.
DeepSeek: A New Contender in AI
DeepSeek is a Chinese AI startup that was founded in May 2023 and is a relatively new player in the AI space, emerging as a competitor to models like OpenAI’s ChatGPT and Google’s Gemini. This technology is based on large language models (LLMs)—AI systems that can generate human-like text, answer complex questions, and even write code. The models rely on massive datasets and advanced neural networks, many of which run on NVIDIA’s GPUs.
DeepSeek and similar AI models are making everyday tasks faster and more efficient. Businesses are using them to streamline services, challenging major tech companies and disrupting traditional industries like:
- Customer Service: AI chatbots are replacing call centers.
- Content Creation: AI tools are generating blog posts, reports, and even ad copy.
- Software Development: AI-assisted coding tools are making programmers more efficient.
The Release of DeepSeek Had Immediate Financial Implications
In December 2024, DeepSeek unveiled its V3 AI model, a language model on Nvidia chips. This development demonstrated that high-performance AI models could be developed with fewer resources, challenging the prevailing notion that extensive hardware was necessary for advanced AI capabilities.
On January 20, 2025, DeepSeek released its R1 reasoning model, an advanced AI system developed at a fraction of the cost and energy consumption compared to existing models. This innovation democratized AI development, enabling smaller firms to compete and potentially lowering costs and environmental impacts.
DeepSeek Disruption in Stocks
Nvidia’s Stock Decline: Nvidia, a leading AI chipmaker, experienced a significant stock drop. On January 27, 2025, its stock price fell by 17% resulting in a market capitalization loss of nearly $600 billion by day’s end. This decline was attributed to concerns that DeepSeek’s efficient AI models could reduce demand for Nvidia’s high-margin data-center products. The Nvidia stock initially recouped some of those losses but it’s still too early to know what the long-term impact of DeepSeek will be.
Broader Market Impact: The announcement also led to a selloff in AI-related stocks, including companies like Vertiv Holdings, which builds data center infrastructure. Investors anticipated reduced demand for chips and power due to DeepSeek’s more efficient AI models.
Investing in the AI Boom
The rapid advancements from companies like NVIDIA and DeepSeek indicate that AI will become increasingly integrated into our daily lives. If you’re an investor or thinking about getting into the market, companies like NVIDIA (and AI-driven startups) could be worth watching. But as with any investment, do your research. AI is still evolving, and markets can be unpredictable.
Whether you’re using AI, working alongside it, or investing in it, one thing is clear—AI is here to stay. While we’re not yet at the stage of human-like robots, AI is already writing books, creating art, and assisting in medical diagnoses. As AI continues to evolve, it will play a more significant role in various sectors. Embracing these changes, staying informed, and finding ways to leverage AI can be advantageous.
Curious about how AI transforms the way we make choices with our cash and what you can do to safeguard yourself? Read our blog: AI (Artificial Intelligence) in Our Financial Lives and how to leverage these tips for your retirement savings.
