NVIDIA’s stock staged a remarkable recovery after a dramatic 17% plunge, fueled by news from the Chinese AI firm DeepSEEK. The stock surged almost 9% as investors took advantage of the sharp drop, increasing the price.
NVIDIA shares rose 8.93%, closing at $128.99 on Tuesday’s New York Stock Exchange. This rally boosted the company’s market capitalization back above $3 trillion, reaching $3.159 trillion.
A day earlier, NVIDIA’s stock had fallen 16.97%, closing at $118.42. This drop caused its market value to sink to $2.903 trillion, below the $3 trillion threshold. NVIDIA lost roughly $600 billion in one trading session, marking the largest one-day loss in U.S. stock market history.
Despite the sharp decline the previous day, the stock reversed course in a single day. Analysts attribute the rebound to bargain hunting and investors’ optimism that affordable AI chatbots could further accelerate the growth of the AI sector.
Even a downgrade from a leading semiconductor analyst, Joseph Moore, didn’t seem to dampen the stock’s momentum. Although the analyst lowered his price target for NVIDIA from $166 to $152, this adjustment had little effect on the stock’s performance.