The article discusses Nvidia’s recent stock decline following concerns about AI chip market saturation and competition. The stock dropped over 8% after a Chinese AI company, Deepseek, announced plans to develop its own AI chips, potentially reducing reliance on Nvidia’s products. The decline was part of a broader tech sector selloff, with Nvidia experiencing its worst trading day since May 2023. Market analysts attribute the selloff to multiple factors, including profit-taking after Nvidia’s remarkable 2023 performance, where the stock surged 239%. The article highlights growing concerns about Nvidia’s valuation and market expectations, with some traders suggesting the company’s stock might face challenges in 2025. The emergence of Chinese competitors in the AI chip space and potential market saturation are identified as key risks to Nvidia’s dominant position. Additionally, the article notes that despite the recent decline, many analysts maintain positive long-term outlooks for Nvidia, citing its strong market position and continued leadership in AI chip technology. The situation reflects broader market dynamics where companies heavily invested in AI technology are facing increased scrutiny over their valuations and competitive positions.