As reported by Yahoo Finance, NVIDIA stocks have regained their value by 90%, following the staggering losses the company suffered after the emergence of Chinese AI startup DeepSeek.
The sudden emergence of DeepSeek’s low-cost R1 model sent global tech markets into a frenzy, with NVIDIA shedding almost $600 billion in market cap overnight – the single largest one-day loss in stock market history. In addition, responses to DeepSeek wiped an estimated $1 trillion from the broader tech sector, and NVIDIA’s CEO Jensen Huang lost $18 billion from his net worth due to the dip.
Interestingly, NVIDIA holds 6 of the top 10 spots. (Credit: Statista)
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However, Huang and NVIDIA shareholders will be pleased to share that stocks are back up to $140 USD, a solid 90% recovery from the losses that shellshocked the company in late January. NVIDIA stocks are still below their all-time peak of $153.13, which was set Jan 7th. Nonetheless, rapid recovery from a historically unprecedented loss paints a bright picture for the AI chipmaker.
Following the initial devastation, NVIDIA’s PR statements stressed to investors that the emergence of startups like DeepSeek would only emphasize the need for AI chips. Based on the market correction, this statement appears to be true. Worldwide spending plans have been recently announced, including a 200 billion Euro investment from the European Commission and an order of 10,000 GPUs for South Korea. France also announced their plans to enter the global AI race, and worldwide, the demand for NVIDIA chips couldn’t be higher.