Nvidia's stock is rebounding after a recent slump, driven by initial concerns over DeepSeek's cost-effective AI model potentially impacting demand for Nvidia's products. DeepSeek, a Chinese AI company, introduced a new AI model that competes with established players like OpenAI's ChatGPT at a lower cost, initially causing Nvidia's stock to drop significantly. However, analysts are now suggesting that these fears may be exaggerated, as skepticism remains about DeepSeek's ability to disrupt Nvidia's market position, particularly in the U.S. market. Nvidia's continued dominance in AI and autonomous use cases, along with the open-source nature of DeepSeek's model, could ultimately benefit the broader AI ecosystem.
The Graniteshares 2x Short NVDA Daily ETF (NVD) experienced a sharp decline, dropping 10.48% to $30.68 at 6:00 AM on Tuesday, January 28.