Nvidia stock begins recovery after DeepSeek AI frenzy prompted near $600 billion loss.
Nvidia (NVDA) stock rose 2.5% premarket Tuesday as the AI chipmaker began to recover from a massive decline the prior day that shaved nearly $600 billion off its market cap.
Nvidia’s 17% freefall Monday was prompted by investor anxieties related to a new, cost-effective AI model from the Chinese startup DeepSeek. Some Wall Street analysts worried that the cheaper costs DeepSeek claimed to have spent training its latest AI models, due in part to using fewer AI chips, meant US firms were overspending on artificial intelligence infrastructure.
Nvidia’s $589 billion market cap decline was the largest single-day loss in stock market history. The DeepSeek announcements drove down not only Nvidia but the market at large, with the tech-heavy Nasdaq dropping 3%. Chip stocks dropped across the board Monday, but also began to recover Tuesday morning.
Source: FINANCE.YAHOO