Deepseek’s threat to Nvidia may not be so serious, says Jim Cramer

Jim Cramer from CNBC said on Friday on Friday that Deepseek may not be a serious threat NvidiaThe turnover of how many investors feared this week and said that the startup for artificial intelligence may not have told Wall Street the whole story about his large voice model.

“Is Deepseek an alternative universe that is terrible for the pricing of Nvidias? Hey, everything is possible,” he said. “But if you had to design the most punishable way to reduce the price of this great stock, you would invent something like Deepseek.”

At the beginning of this week, investors were stunned to find out that Deepseek developed a AI model that it said that they earned 6 million US dollars -significantly less than the colleagues spent on such programs. The company also claimed that the model could surpass the Openai industry favorite. Wall Street came to the conclusion that Big Tech may not have to spend as much money on high-quality chips from Nvidia, which has seemed to have seemed to dominate the only option for companies in the AI ​​world. The NVIDIA shares are concerned about the worries of lower profits, with the share lost almost $ 600 billion in one session, the largest individual day of day in the market history.

Cramer admitted that investors’ reaction is logical if Deepseek’s model actually cost so little, which forced Nvidia to reduce prices. However, he said that Deepseek would be more for his program than the investors who point out a new report from Semianalysis, a semiconductor research and consulting companies. The semianalysis suggested how Deepseek misleaded the development of the new model, and said that the company could actually have spent more than 500 million dollars.

Cramer was also skeptical that managers like Tech giant MetaPresent Tesla And oracle Would have invested so much money in Nvidia without doing proper Due diligence. Deepseek was no secret, he continued, only a lot of attention was received this week.

“I think the Semiianalysis is exactly right,” he said. “It can only be a long knife that is aimed at Nvidia, and nothing more.”

Nvidia refused to comment. Deepseek did not immediately answer the request for comments.

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Disclaimer of the CNBC Investing Club Charitible Trust holds shares of Nvidia and Meta.