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 demand. 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 advanced chips. However, analysts are now suggesting that these concerns may be exaggerated, particularly regarding DeepSeek's influence in the U.S. market. Nvidia's continued leadership in AI and autonomous applications remains a strong point, with skepticism about major U.S. companies shifting to DeepSeek's technology. The open-source nature of DeepSeek's model could also stimulate further innovation in the AI sector, potentially benefiting Nvidia in the long run.
The YieldMax NVDA Option Income Strategy ETF (NVDY) rose 4.53% to $20.06 as of 6:00 AM on Tuesday, January 28.