Why Nvidia Stock Skyrocketed Today
Shares of Nvidia (NASDAQ: NVDA) spiked Tuesday. The company's stock gained 8.9% as of market close. The move up comes as the S 500 and Nasdaq Composite gained 0.9% and 2%, respectively.
Nvidia's stock felt some relief after a major sell-off on Monday that was spurred by a new AI entrant, DeepSeek.
AI stocks were hammered as the market reacted to DeepSeek, a Chinese AI model. Its newest version was just released, and despite lacking the hardware and funding its U.S. counterparts enjoy, DeepSeek's team was able to create an AI model that rivals those made by OpenAI and Amazon. Investors are worried that demand for U.S. hardware could weaken as a result. Nvidia's stock fell nearly 20% in a day on the news.
Source Fool.com
