This may lead to greater sales of Nvidia's latest GPUs as they can maximize inferencing performance. The company's new Blackwell architecture will give test-time scaling -- a technique that allows a model to think over a problem -- on models like DeepSeek R1 "a giant boost," Nvidia says.

Chuck Zodda, managing partner and Chief Investment Officer from the Armstrong Advisory Group discusses the dip of tech stocks, especially Nvidia after the announcement of Chinese AI start-up DeepSeek.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.