Nvidia, the tech giant facing a significant decline after a bombshell from Chinese AI startup DeepSeek, saw a modest uptick in its stock price on Thursday.
Nvidia’s shares rose 0.77%, closing at $124.65 on the New York Stock Exchange. The company’s market capitalization stood at $303.5 billion, barely holding its position in the exclusive $300 billion club.
Despite this small gain, it’s important to note that Nvidia’s stock has fallen more than 15% over the past five trading sessions.
The selloff was sparked by news on Monday that DeepSeek, a Chinese AI firm, had developed a chatbot that reportedly outperforms OpenAI’s technology at a fraction of the cost. DeepSeek’s chatbot was said to have been created for just one-twentieth of the investment made by U.S. competitors.
This revelation raised concerns that demand for AI-specific chips, which Nvidia is heavily dependent on, might decline, putting pressure on the stock recently.
However, Thursday’s trading session brought a slight recovery, likely driven by bargain hunters looking to buy the dip in Nvidia’s stock.