Ex-Intel CEO Pat Gelsinger loads up on Nvidia stock, says the market's reaction to DeepSeek is wrong
Get it while you can?

DeepSeek, a China-based startup, unveiled an AI assistant last week that is 20 to 50 times cheaper to train and operate than OpenAI's models. This triggered a massive selloff of tech stocks that had been driven by the rise of AI. The selloff wiped nearly $600 billion from Nvidia’s market value as investors believed that demand for its processors would decrease. However, ex-Intel CEO Pat Gelsinger argues that compute performance is never enough and that high demand for processors from tech giants will remain.
The reaction to DeepSeek's breakthrough has overlooked three critical lessons from five decades of computing, according to Gelsinger's post over at LinkedIn. First, lowering the cost of computing resources expands the market, not contracts it. Just as cheaper technologies like PCs and mobile devices drove explosive growth, making AI more affordable will integrate it into more applications and will trigger broader adoption.
"The market reaction is wrong, lowering the cost of AI will expand the market," Gelsinger wrote. "Today I am an Nvidia and AI stock buyer and happy to benefit from lower prices."
The market reaction is wrong
ex-Intel CEO Pat Gelsinger
Second, engineering thrives under constraints, Gelsinger notes. DeepSeek’s team faced export restrictions and limited resources but created a world-class solution at a fraction of the usual cost. This ingenuity resonates with insights from computer science pioneers, who often state that they achieved their best work under significant limitations.
Third, openness fosters innovation, Gelsinger contends. The shift toward proprietary AI models stifles transparency and collaboration. Open ecosystems, as proven by Linux, Wi-Fi, and USB, consistently lead to better outcomes by encouraging scrutiny, ethical introspection, and broader adoption. DeepSeek’s open approach offers a much-needed reminder of the importance of shared innovation in AI.
“Open wins every time it is given a proper shot,” Gelsinger wrote. “AI is much too important for our future to allow a closed ecosystem to ever emerge as the one and only in this space.”
Gelsinger is not alone in his assessment that the market reaction is wrong; other market observers believe that the reaction was exaggerated. AMD, Broadcom, Intel, and Nvidia remain essential for building AI data centers and training large AI models.
"The real money in AI is providing the chips for the data centers from the likes of Nvidia, AMD, and Broadcom," Daniel Morgan, senior portfolio manager at Synovus Trust Company, told Reuters. "Overall, I view the AI tech selloff today as an opportunity to add high-quality tech shares on weakness."
DeepSeek’s model can be used locally on PCs and even smartphones, which is its fundamental advantage over ChatGPT's o1 and o4 models that reside on the cloud. However, training the model still requires advanced data center-grade hardware. Although DeepSeek reduces requirements for training hardware, companies like Anthropic and OpenAI could increase the number of parameters for their models while still consuming their vast computing resources.
To that end, demand for advanced processors in large-scale computing environments is expected to persist. Also, it is unclear how much resources — both computational and financial — DeepSeek consumed while prepping to train its model and developing all the optimizations to reduce requirements for the training cluster. Thus, the implications of DeepSeek’s breakthrough on the hardware market remain to be determined.
As a result, experts suggest that the selloff could present a buying opportunity for long-term investors in tech stocks like AMD, Broadcom, Intel, and Nvidia.
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Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
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LibertyWell Reminds me of that scene in Wall Street Money Never Sleeps:Reply
Main character to banker CEO: “what’s your target number, how much is enough?”
CEO: “More”
There’s more than enough for everyone’s need.
There’s no where near close enough for everyones greed. -
couch sweet potato You know things are rough at silicon valley when intel CEO buys Nvidia stock after a single open source AI model gets releasedReply -
couch sweet potato
I'm just gonna paste what I texted to a friend yesterday when they asked me how this works-Fran- said:"AI is not a bubble!" :rollseyes:
Regards.
"I think it's because of Nvidia, OpenAI, Microsoft etc fap wheel
They can move millions together doing that, hence AI *bubble*
Nvidia says they are going to make millions selling hundreds of thousands of GPUs because they're fundamental to train AI, so investors go and put a lot of money on it, then OpenAI buys the GPUs but say they're gonna make even more millions licensing ChatGPT and so investors go and put millions on that, and so on and so forth.
And so they build this huge and flimsy scaffolding to make profit out of it, that's holding a product that's basically all sellable promises but with mostly fake usefulness.
And then something like this happens and it all goes to heck🤷" -
das_stig Nvidia says they are going to make millions selling hundreds of thousands of GPUs because they're fundamental to train AI, so investors go and put a lot of money on it, then OpenAI buys the GPUs but say they're gonna make even more millions licensing ChatGPT and so investors go and put millions on that, and so on and so forth.
and then Microsoft create co-pilot and investors laugh, point to Bing, Nokia, Vista, W8 and put millions elsewhere -
Pierce2623
Yeah Microsoft is just a bunch of nobodies. No influence on the pc market at all. People….das_stig said:and then Microsoft create co-pilot and investors laugh, point to Bing, Nokia, Vista, W8 and put millions elsewhere -
pug_s Lol. I wouldn't bet on it. Now that we know that AI Models can be made without the high end Nvidia chips, even the Chinese can create these AI Models using lower end Chinese made chips within the next year or 2.Reply -
hotaru251 ai is a fad. Its hot as its new and advancing.Reply
that wont last & unlike the last fad (crypto) ai has no real profit outcome....your normal person has no real use for it and will never pay for access to it to ever recoup the cost sunk into it. -
EzzyB
"Microsoft is going bankrupt" is second only to "I'm switching to Linux" as the most overused and ridiculous statements on the Internet.Pierce2623 said:Yeah Microsoft is just a bunch of nobodies. No influence on the pc market at all. People….
If one listens to the Internet on these things, Microsoft was bankrupt by the turn of the century and 18 billion people are using Linux on their desktops. 😜
AI isn't going anywhere. I expect more of a shift in it than anything else. Frankly the data to train a true, Artificial General Intelligence does not exist. The only alternative is the Internet. Let's face it, there is no intelligent life there. I believe that way too much knowledge is stored only in the human brain to make AGI ever work properly.
I think what we'll see is more specialized AI. Think of a CAD program for an architect that not only knows structural analysis, but is also an expert on state and local building codes. THAT is a limited subset of knowledge that an AI could learn easily and be quite useful. But, it probably can't make an aesthetically beautiful building. -
George³ In other words, Pat hopes to influence you to trust NVDA again so that he can gain, rather than lose, from this purchase.Reply