Monday’s more than $500 billion loss for Nvidia followed panic surrounding DeepSeek’s AI model running on far less of Nvidia’s coveted GPUs than its American counterparts.

In a matter of days, DeepSeek proved to be so popular as to climb to the top of Apple's App Store, surpassing OpenAI's ChatGPT as the most downloaded app. But for owners of Nvidia stock, and stock traders in general, DeepSeek is on track of becoming a black swan — an unexpected event with extreme consequences.

DeepSeek has built a highly efficient and cost-effective AI model. Bernstein analyst Stacy Rasgon explains why it isn't a threat for Nvidia.