Technology shares rebounded Tuesday, led by a 6% recovery in Nvidia (NVDA.O) following Monday’s record-breaking $593 billion market value loss, driven by DeepSeek’s launch of a low-cost AI model. This free AI assistant, which claims reduced data usage and costs, sparked worldwide interest and skepticism, shaking confidence in U.S.-dominated AI markets.
The Philadelphia Semiconductor Index dipped 0.2% Tuesday after Monday’s 9.2% plunge, while Nvidia traded above $126 but remained below its Friday close of $142.62. Chip analyst Cody Acree noted that the selloff may prompt investors to reassess AI stock valuations but sees long-term demand for advanced chips persisting.
DeepSeek’s disruptive entry challenges U.S. AI dominance, drawing praise from Microsoft-backed OpenAI CEO Sam Altman, who called it a “legit invigorating” competitor. However, some doubts linger over its cost claims.
Monday’s selloff reflected global investor unease, with $1 trillion wiped from semiconductor and AI-linked stocks, highlighting concentrated capital risks. Still, retail investors capitalized on Nvidia’s dip, buying a record $562.2 million in shares.
Market heavyweights like Apple, Amazon, and Microsoft helped tech stocks recover, with upcoming earnings reports expected to address AI investment strategies.
Source: Swifteradio.com
