DeepSeek built a competing large language model (LLM) to OpenAI's ChatGPT, but claims that it trained the model with old Nvidia processors that aren't widely used anymore. This news has shellshocked technologists and analysts across Wall Street because if DeepSeek's methods of building highly capable AI can be done using legacy hardware,

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Shares of Nvidia (NASDAQ: NVDA) gained ground on Wednesday, climbing as much as 5%. As of 12:42 p.m. ET, the stock was still up 4.4%. The catalyst that sent the artificial intelligence (AI) chipmaker higher was news that strong demand for its processors will likely continue.

Nvidia was gaining in Tuesday trading. The chip maker looks set to gain from the wider market relief around last-minute deals that averted the U.S. putting tariffs on goods imported from Mexico and Canada.

DeepSeek developed a highly cost-efficient model threatening U.S. AI supremacy, causing NVDA’s stock to plunge and sparking fears of an AI price war.

While some have recovered, Nvidia ( NVDA 5.21%) has not. Nvidia's stock is around 20% off its all-time high, thanks to the DeepSeek scare, but I don't think investors should panic sell. Instead, they should consider this a buying opportunity,