Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

EarnIn launches Early Pay for paychecks | PaymentsSource

March 21, 2025

How to Retire Like an Adult: An 11-Point Checklist for Responsible Freedom

March 21, 2025

How Trump’s Chaos Is Exacerbating The Financial Woes Of Colleges

March 21, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
InCapital Direct
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
InCapital Direct
Home»Finance News»Nvidia rises 2% in tenuous bounce Tuesday following largest market value loss in history
Finance News

Nvidia rises 2% in tenuous bounce Tuesday following largest market value loss in history

January 28, 2025No Comments3 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Nvidia rises 2% in tenuous bounce Tuesday following largest market value loss in history
Share
Facebook Twitter LinkedIn Pinterest Email

Jen-Hsun Huang, chief executive officer of Nvidia Corp.

Patrick T. Fallon | Bloomberg | Getty Images

Nvidia rose on Tuesday, one day after the emergence of a cheaper, open-source artificial intelligence model from China caused the shares to post the biggest market value loss in stock market history.

Nvidia was last higher by about 2.5% in Tuesday trading. The stock has swung between gains and losses in morning trading after opening higher.

The stock plunged 17% on Monday and slashed more than $595 billion from the company’s valuation, the biggest single-day market cap decline on record.

Stock Chart IconStock chart icon

Nvidia 1-day

Monday’s steep sell-off — which sent shockwaves across the broader tech industry, with the Nasdaq Composite dropping 3% —  came as traders grew fearful that an AI stock bubble could burst due to the Chinese startup DeepSeek.

The S&P 500 and Nasdaq traded into the red following Nvidia on Tuesday as investors looked for a bounce in the AI bull market leader to restore confidence.

DeepSeek last week released an open-source model that reportedly outperformed OpenAI’s in different tests. The company also said the initial version of this model cost less than $6 million to build — a fraction of the billions of dollars major U.S. tech companies are spending on AI.

To be sure, Nvidia — which has been the posterchild of the U.S. AI trade due to its high-powered chips  — called DeepSeek’s R1 model “an excellent AI advancement.”

“DeepSeek’s work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant,” an Nvidia spokesperson told CNBC on Monday.

See also  Stocks making the biggest moves after hours: SBUX, LC, FFIV, QRVO

Additionally, most Wall Street analysts stood by Nvidia after the sell-off, with none of them downgrading the stock thus far. Some also see the DeepSeek developments as a long-term positive for AI.

“We think investors need to differentiate between the impacts around potential benefits and drawbacks of DeepSeek for the software industry. More powerful LLM models that can run at a fraction of the original cost estimates (if confirmed) will mean that genAI adoption should come easier … and hence, faster and broader across the software universe,” wrote Barclays analyst Raimo Lenschow.

Stock Chart IconStock chart icon

hide content

Nvidia, YTD

To be sure, while Morgan Stanley’s Joseph Moore kept his overweight rating on the stock, he did trim his price target to $152 from $166 on Tuesday.

“The DeepSeek release highlights evolutionary innovations in AI, some of which may be deflationary. That said, the stock market reaction is probably more important than the cause, and could bring further export controls or reduce spending enthusiasm; trimming PTs but remain positive,” he said.

The Wall Street endorsements, however, failed to lift the stock. Nvidia shares are now down 23% from an all-time high reached earlier this month.

Source link

bounce history largest loss Market Nvidia rises tenuous Tuesday
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous Article5 ways to grow your savings with automatic transfers
Next Article Will The SAVE Income-Driven Repayment Plan Cease To Exist In 2025?

Related Posts

How Trump’s Chaos Is Exacerbating The Financial Woes Of Colleges

March 21, 2025

Student loans will be handled by Small Business Administration: Trump

March 21, 2025

Student Loan Recertification Extensions Announced For Borrowers

March 21, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Should You Donate Your Points and Miles to Charity?

December 15, 2024

5 types of financial aid for adult students

November 18, 2024

FUBO, AAL, NVDA, MSFT and more

January 6, 2025
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

EarnIn launches Early Pay for paychecks | PaymentsSource

March 21, 2025

How to Retire Like an Adult: An 11-Point Checklist for Responsible Freedom

March 21, 2025

How Trump’s Chaos Is Exacerbating The Financial Woes Of Colleges

March 21, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 incapitaldirect.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.