Nvidia's recent rebound comes after a period of investor anxiety over the potential impact of DeepSeek's cost-effective AI model on Nvidia's market share. DeepSeek, a Chinese AI company, introduced a new model that initially caused a 17% drop in Nvidia's stock due to fears of reduced demand for its high-powered chips. However, analysts are now suggesting that these concerns may be exaggerated, particularly regarding DeepSeek's ability to penetrate the U.S. market. Nvidia's continued leadership in AI and autonomous technology development remains a strong counterpoint to the initial panic. The open-source nature of DeepSeek's model could even stimulate further innovation in the AI sector, potentially benefiting Nvidia in the long run.
The GraniteShares 2x Long NVDA Daily ETF (NVDL) surged 10.25% to $53.37 as of 6:00 AM on Tuesday, January 28.