Nvidia (NVDA) stock faced a market cap loss of close to $600 billion on a single day last month due to fears triggered by China’s DeepSeek

Rather than a disaster, the drop in Nvidia stock caused by DeepSeek looks like a terrific opportunity for long-term investors. As shown below, the forward price-to-earnings (P/E) ratio dropped sharply along with the stock price.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.