While companies like DeepSeek may find success in certain market segments, they face an uphill battle against this massive capital advantage. In other words, claims that demand for Nvidia's premium chips will collapse simply don't align with market realities and the trajectory of AI development.

A major tech stock sell-off ensued Monday as the debut of DeepSeek rattled investors. Nvidia, Alphabet, and Microsoft were among the biggest losers.

Short sellers of artificial intelligence-related stocks raked in bumper profits after the smashing debut of low-cost AI models from China's DeepSeek spooked Wall Street, with bets against Nvidia yielding record profits totaling more than $6 billion.

DeepSeek topped the Apple App Store chart and sparked fears the Chinese company was quickly catching up with OpenAI's ChatGPT while costing far less.

Other technology stocks trading at relatively low valuations to historical levels include Micron, Super Micro and Workday.

Nvidia on Monday said Chinese AI firm DeepSeek's advances show the usefulness of its chips for the Chinese market and that more of its chips will be needed in the future to meet demand for DeepSeek's services.