Deep Dive: How DeepSeek's Rise Only Made Nvidia Stronger – GPU’s Flying Off Shelves in China…

Sooo, do we all remember when everyone freaked out that DeepSeek was about to murder Nvidia’s AI dominance? Yeah, well, it turns out that really was some grade-A panic selling, because now Chinese tech giants are lining up to buy Nvidia’s H20 chips like they’re limited-edition Yeezys.

(Source: Giphy) 

In short, Tencent, Alibaba, and ByteDance have been snapping up H20s at breakneck speed ever since DeepSeek’s AI models went viral, proving once again that the AI arms race isn’t slowing down—it’s accelerating. So, while the market initially yeeted $600 billion off Nvidia’s market cap in January over fears that DeepSeek’s “cheap and efficient” AI models would kill demand for high-powered GPUs, reality just came back with a baseball bat: Better AI means more demand for computing power, not less. 

Meaning, as of right now, Nvidia’s “Made for China” chips are flying off the shelves left, right, and twice on Sunday. Simply put, since Washington decided that China shouldn’t get its hands on America’s top-tier AI chips, Nvidia had to MacGyver a workaround—the H20, a slightly nerfed but still powerful GPU designed to comply with U.S. export restrictions. 

(Source: SCMP) 

As expected, China is stockpiling these bad boys creating a demand so insane that smaller players in healthcare and education are now buying AI servers packed with H20s and DeepSeek models—something that used to be reserved for deep-pocketed banks and telecom firms. Translation: AI is no longer just a tech giant’s game. The floodgates are open, and everyone wants a piece.

So, with that, I can hereby declare that DeepSeeks rise didn’t kill Nvidia, they just made them stronger. Of course, it wasn’t a totally exaggerated reaction. When DeepSeek dropped its AI model in January and outperformed some of the biggest names in the U.S., investors lost their minds. The logic was that DeepSeek’s AI models are more efficient and cheaper to run—meaning, companies won’t need as many expensive Nvidia chips. Therefore, Nvidia is screwed. 

(Source: Fortune) 

However, in the grand scheme of things, that’s not how this works. DeepSeek’s breakthrough just made AI more accessible to more companies, which means more people need AI chips, not fewer. But, but, but… what about government restrictions? Yeah, what about them? Even if Washington slaps new restrictions on Nvidia, China will just pivot to domestic alternatives like Huawei. Which means, DeepSeeks frenzy is happening with or without America’s blessing. 

Bottom line to all of this? Well, despite all the noise, Nvidia is still the only game in town when it comes to high-powered AI hardware. Analysts estimate Nvidia shipped 1 million H20 chips in 2025, raking in $12 billion in revenue—and that’s just from one “watered-down” product line. Which only means one thing and one thing only, investors who dumped their Nvidia shares in January because they thought AI was about to get “too efficient,” congratulations—they just played themselves. 

(Source: Giphy) 

For now, we wait for Nvidia’s earnings and continue relishing in the fact that this is Jensen Huang's world—and we are all just living in it. As always, stay safe and stay frosty, friends! Until next time… 

P.S. My buddy Jared is sharp as hell—probably one of the smartest guys I know. But when it comes to investing? An absolute clown. Why? Because he doesn’t grasp the one thing that separates winners from losers in the market: information. And not just any information—I’m talking about the kind of intel that Wall Street hoards like the FBI hoards Hunter Biden's laptop—because the second retail traders get their hands on it, their edge starts to disappear.

Moral of the story here? Don’t be a Jared. Get access to the real market-moving data, the stuff hidden behind paywalls and institutional gatekeeping by joining Stocks.News premium. At the end of the day, the market isn’t playing fair—so why should you? 

Stocks.News does not hold positions in companies mentioned in the article.