Nvidia stock was dropping Monday. The threat of sweeping tariffs on U.S. imports has raised the prospect of similar levies being imposed on semiconductors.Nvidia shares were down 4.7% at $114.40. The stock fell 3.

This may lead to greater sales of Nvidia's latest GPUs as they can maximize inferencing performance. The company's new Blackwell architecture will give test-time scaling -- a technique that allows a model to think over a problem -- on models like DeepSeek R1 "a giant boost," Nvidia says.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

One of the biggest stories from last week underscores just how critical AI has become—not just for Silicon Valley, but for America’s national security.