The release of the new Chinese artificial intelligence (AI) model, DeepSeek, and the decision to make it open source proved a highly disruptive move for the U.S. technology sector and might prove a turning point in the ongoing AI revolution.
The most significant casualty of the development has been the stock price of the semiconductor giant Nvidia (NASDAQ: NVDA). Indeed, in the Monday pre-market, NVDA shares plunged 11.70% to $125.94 – the lowest they’ve been since October.
The new AI model and the technological breakthrough it brought also triggered speculation that the U.S. stock market bubble might be about to burst as some argue that the strength of big tech was highly dependent on them holding an effective monopoly over the industry due to its vast energy and computing power needs.
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Under the circumstances, Finbold elected to consult the ‘culprit’ – DeepSeek – on whether it thinks the January 27 downturn is but a brief plunge or the beginning of the end for the boom and where NVDA stock price might stand on December 31, 2025.
DeepSeek sets Nvidia stock price target for December 31, 2025
Upon having its search function enabled and examining Nvidia’s performance, DeepSeek quickly proved exceedingly bullish about NVDA shares and forecasted a 74.69% rally by the end of 2025 to a new all-time high (ATH) of $220.
Such a price target was, the AI explained, based on Nvidia’s own successes, some estimates about the chipmaker’s 2025 revenue, and the overall market positivity toward the company.
When cautioned that it could itself have a major bearing on NVDA stock’s performance given the pre-market plunge, DeepSeek conceded its original price target might be overly optimistic given the new circumstances.
Still, the AI proved only slightly less bullish as it set its revised price target at $180 – 42.93% above press time – as it estimated that competition would limit the upside, but also Nvidia remains sufficiently strong to keep gaining ground.
Featured image via Shutterstock
