Shares of the artificial intelligence (AI) chip leader have been crushed this year, but recent developments suggest the best is yet to come.

Alphabet is increasing its capital expenditures on AI investments.

Alphabet's big spending plans surprised Wall Street. The news should soothe investors worried about last week's DeepSeek shakeup disrupting the AI narrative.

Nvidia Corp.’s stock fell Monday as investors weighed the potential for tariffs to impact chip companies and continued to assess the fallout from DeepSeek. Shares of Nvidia slid 2.8% to rank among the worst performers in the PHLX Semiconductor Index The stock pared losses after President Donald Trump said he had agreed to pause the Mexico tariffs for a month.

Because Nvidia is still growing its revenue rapidly, using trailing earning metrics can give a false impression of where the company is headed. However, they're also useful in this case because its future had a wrench thrown into it thanks to DeepSeek's breakthrough.

Nvidia (NASDAQ:NVDA) stock received quite a shock last week when the Chinese tech company DeepSeek announced that it had successfully developed

Stocks gave up earlier gains Friday as the White House reaffirmed President Donald Trump’s plan to implement some of his long-promised tariffs Saturday, with the market closing out a whirlwind week highlighted by Nvidia’s record-breaking losses in reaction to China’s DeepSeek cheaper AI model and a flurry of earnings reports.

Most AI compute has been driven by Nvidia chips, and we obviously have a deep partnership with Nvidia and will for as long as we can see into the future,” Jassy said on a cal

Nvidia was one of several technology stocks hit by the emergence of Chinese AI competitor DeepSeek. An analyst sees the pullback as a buying opportunity. The NVDA Analyst: Morgan Stanley analyst Joseph Moore maintains an Overweight rating on Nvidia with a $152 price target.