As reported by Yahoo Finance, NVIDIA has recovered 90% of its market losses, rebounding sharply after the turmoil caused by Chinese AI startup DeepSeek.
DeepSeek’s low-cost R1 model sent shockwaves through the global tech sector, triggering a historic selloff that erased nearly $600 billion from NVIDIA’s market capitalization in a single day-the largest one-day loss in stock market history. The broader tech sector shed an estimated $1 trillion, while NVIDIA CEO Jensen Huang saw his net worth decline by $18 billion overnight.
(Credit: Statista)
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Now, NVIDIA shares have rebounded to $140 USD, marking a remarkable turnaround from the late-January collapse. While still below the all-time high of $153.13 recorded on January 7, the swift recovery highlights investor confidence in the company’s long-term prospects.
Following the initial downturn, NVIDIA moved quickly to reassure investors, stating in a press release that competition from startups like DeepSeek would ultimately reinforce the demand for AI chips. Market trends appear to support this assertion. Governments and enterprises worldwide are ramping up AI investments, with the European Commission unveiling a €200 billion initiative, South Korea placing orders for 10,000 GPUs, and France making a strategic push into AI development.
As global demand for AI hardware accelerates, NVIDIA’s ability to navigate market disruptions and capitalize on growth opportunities positions the company at the forefront of the industry’s next phase.