Nvidia Stock Price Starts Recovering After Massive DeepSeek Selloff
Its stock rebounded by approximately 3.77% on Tuesday morning, trading nearly at $123
Nvidia's stock was showing signs of recovery on Tuesday after a significant selloff triggered by DeepSeek's AI model launch.
On Monday, Nvidia's market value plunged by nearly $600 billion, or nearly 18%, marking the largest single-day market-cap loss in stock market history, according to news outlet AFP.
As of Tuesday morning, the NASDAQ-traded stock rebounded about 6%, trading at around $126.
The Nvidia sell-off "may have gone too far", said Kathleen Brooks, research director at XTB, especially given some doubts over whether DeepSeek's AI was developed as cheaply as it claims.
The tech-heavy Nasdaq index was up around one percent after dropping more than three percent the previous day. The Dow and the wider S&P index were also higher, though lagging behind the Nasdaq.
Nvidia wasn't the only tech stock that took a tumble Monday due to DeepSeek's rollout.
Micron, Arm Holdings and Broadcom took hits.
President-elect Donald Trump said DeepSeek's AI should be a "wake up call" to the U.S. tech industry.
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