- Nvidia rose as much as 3%, a day after absorbing the biggest single-day market cap loss in history.
- US stock indexes also staged a rally after a tech-led sell-off hit the S&P 500 and Nasdaq on Monday.
- Investors are closely watching for more details about DeepSeek’s rapid AI advances.
Nvidia staged a moderate rebound on Tuesday, rising as much as 3%, following a 17% drop the prior day.
More broadly, major US indexes rallied after S&P 500 and Nasdaq 100 saw sharp losses on Monday amid concerns over the Chinese AI firm DeepSeek rapid and cost-effective advances. The Dow ultimately bucked the tech sell-off, rising 0.7% yesterday.
On Tuesday, the S&P 500 rose 0.6% as of 10:30 a.m. ET and the Nasdaq 100 climbed 1.3%, while the Dow Jones industrial average posted a 0.3% gain.
The drop in Nvidia the previous day amounted to $589 billion of market value erased, the largest single-day wipeout in history. CEO Jensen Huang’s personal net worth fell from $121 billion to about $100 billion amid the sell-off, the Bloomberg Billionaires Index estimated.
Fellow US tech giants Broadcom and Oracle also recovered from dramatic declines, rising as much as 3.3% and 3%, respectively.
“Valuations have been getting lofty in the tech space and investors need to appreciate that richly priced stocks can fall hard on the slightest bit of bad news,” said Russ Mould, investment director at AJ Bell.
The DeepSeek model impressed the tech community and will have a ripple impact, Dan Ives of Wedbush Securities wrote in a recent note, but said that DeepSeek is “not launching 100x the capacity/algorithms that is needed to even consider this a competitive threat in our view.”
“No US Global 2000 is going to use a Chinese startup DeepSeek to launch their AI infrastructure and use cases. At the end of the day there is only one chip company in the world launching autonomous, robotics, and broader AI use cases and that is Nvidia,” Ives said.