After DeepSeek Fever, Nvidia Shares Bounce Back At Wall Street

After a tumultuous day on Monday, January 27, the American markets appear to have to stabilise. This stabilisation process was led by tech stocks, particularly Jensen Huang-led Nvidia.

Nvidia Recovers

Nvidia stocks received a shock treatment after DeepSeek, a Chinese AI service, exhibited its capabilities rivalling OpenAI's ChatGPT, among others, using fewer Blackwell chips.

The company, which suffered major losses at the bourse on the first day of the trading week, came back from the shock with some powerful numbers.

The company shares closed the day on Tuesday, January 28 in green with major gains.

The makers of the coveted Blackwell chips ended the day on USD 128.86 per share, higher than its previous day's closing of USD 118.42. This meant a gain of 8.82 per cent or USD 10.44.  

The Fall Of Monday

One of the most valuable companies in the world saw its vale decline after the Chinese company projected advanced results with fewer chips and fewer data, thereby sending a shiver down Wall Street regarding the potential and future of AI business in the United States, especially for stakeholders like Nvidia, AMD, OpenAI, Google and Meta among others.

Talking about Nvidia's dramatic fall, the company shares dropped by 16.86 per cent or USD 24.04 in just one trading session.

Nvidia on its part came out in its defence and said that if anything teh DeepSeek experiment shows that there would be greater demand of Nvidia chips.

Investor confidence may have also been boosted by OpenAI CEO Sam Altman comments, which while acknowledging DeepSeek's critical achievements, also appeared to assure stakeholders in OpenAI's potential and intentions.

The company CEO Jensen Huang also saw some recovery on his personal front as he added around USD 9 billion to his net worth after witnessing a USD 20 billion wipeout a day before.

Sam Altman On DeepSeek

In a post on X, Sam Altman said, deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price.

we will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases.

Altman further added, "but mostly we are excited to continue to execute on our research roadmap and believe more compute is more important now than ever before to succeed at our mission.

the world is going to want to use a LOT of AI, and really be quite amazed by the next gen models coming."