Portfolio Manager Pors Cold Water on Nvidia’s Stock Bounce Back

Fund Manager Dan Niles Has Thrown Cold Water Over Nvidia‘S Tentative Recovery from Monday’s Share Price Fall, Warning That The Chipmaker’s Stock Might Not Have Hit The Bottom.

Shares in Nvidia Slid 16.9% on Monday after Chinese Startup Deepsek Claimed Its Free, Open-Source Large Language Model Was built in just two months costing $ 6 million, a fruction of the cost borne by Other Major Players.

These developments have sparked concerns Over how much money big tech companies will invest in ai, Hitting the shares of nvidia, a key ai chipmaker.

“Nobody Questions Whether Nvidia is the undisputed king and chips. IO Manager at Niles Investment Management Founder, Told CNBC Tuesday.

After Monday’s Share Fall – Which slashed more than $ 595 billion from the company’s valuation, the Biggest Single-Day Market Cap Decline On Record – Nvidia Shares Rose Nearly 9% Tuesday, but niles have a gloomy forecast for us chipmaker looking ahead.

“I think investors should be very careful about assuming that this is the bottom,” He Told CNBC’s Sri Jegrath and Chery Kang on Tuesday’s “Squawkbox Asia.”

Nvidia could “Absolutely” Bounce Back From Massive Move, He Said, “But if estimates have to go down from Nvidia (Revenue) Growing at 50% to Growing at 20 to 20 Tills I nside potentially From here. “

In a Statement to CNBC on MondayNvidia welcomed the emergence of chinese ai competition. A Company spokesperson Called Deepsek’s R1 Model “An Excellent Ai Advancement,” Indicating that the US-Chipmaker Sees An Opportunity for its Graphics Processing UNITS, Or Gpus.

Microsoft Bets

Niles is also Watching Whether Deepsek’s emergence has the potential to fracture the relationship between Ai Backer MicrosoftOpenai and Nvidia.

Microsoft has been a driving forr Microsoft has poured Nearly $ 14 billion Into the AI ​​Startup to Date.

Despite being “The biggest spender on ai by far, and Nvidia’s biggest customer,” Niles said microsoft’s cap-ax count go from growing “70% to 80% to 80% to basically flat by jeue.”

“And so that’s the way you kind of need to think about it, become part of this is, what is the return on investment, on what you’ve spent on so far?” He said.

“And the answer has been no for them, and so we’re going to have to see how that plays out.”