While companies like DeepSeek may find success in certain market segments, they face an uphill battle against this massive capital advantage. In other words, claims that demand for Nvidia's premium chips will collapse simply don't align with market realities and the trajectory of AI development.

Nvidia’s shares tanked almost 18 per cent on Monday amid concerns about competition from Chinese artificial intelligence start-up DeepSeek, but analysts dismissed fears of lasting damage, calling the drop a “healthy market correction”.

Nvidia Corp (NASDAQ: NVDA) is taking a material hit this morning as investors respond to the launch of a Chinese startup’s highly efficient and cost-effective AI model. DeepSeek claims to have spent less than $6.