Why Nvidia Stock Rallied on Tuesday
Shares of Nvidia (NASDAQ: NVDA) surged higher on Tuesday, after taking it on the chin Monday. The maker of graphics processing units (GPUs) used for artificial intelligence (AI) applications gained as much as 7.2%. As of 1:30 p.m. ET, the stock was still up 7.1%.
Investors have had a day to digest the news about reported AI developments in China -- and cooler heads are beginning to prevail.
Nvidia stock was crushed yesterday following reports that Chinese AI start-up DeepSeek developed an AI model that delivered comparable results to existing chatbots at a fraction of the cost. The model, dubbed R1, reportedly used far fewer computing resources and was developed using older, less advanced AI chips.
Source Fool.com
