Nvidia's stock rebounded significantly on January 28th, following a historic selloff driven by concerns over the dominance of U.S. tech giants in the AI sector. The emergence of DeepSeek, a Chinese AI startup, has challenged Nvidia's market position, offering a cost-effective alternative to its advanced chips. This development has raised questions about Nvidia's unchallenged supremacy in AI, as highlighted by Nassim Taleb during Hedge Fund Week in Miami. Taleb warned that the recent 17% drop in Nvidia's stock could be a precursor to larger corrections in the AI-driven market, urging investors to consider protective hedges against potential market shocks. Despite these concerns, Nvidia's shares closed with a notable increase, reflecting investor optimism amid high volatility.
The Direxion Daily NVDA Bull 2X Shares (NVDU) saw a significant rise, closing at $79.77, up 16.69% from the previous close of $68.36, before settling at $78.88 at 5:00 PM on Tuesday, January 28.