Nvidia rises 7% after Monday's AI stock rout as bounce gains steam
Published On Jan 28, 2025, 7:15 AM
Nvidia's stock rebounded by about 7.8% following a sharp decline the previous day where it lost approximately 17% of its value, translating to a staggering $595 billion market cap loss. This drop was triggered by fears of a potential AI stock bubble due to the introduction of a competitive open-source AI model from a Chinese startup. Despite the volatility, retail investors started buying the dip, reflecting a recovery in the market. Analysts mostly maintained positive outlooks on Nvidia, suggesting that the recent developments might actually foster broader AI adoption in the long run, although some adjusted their price targets downward. Overall, while Nvidia faced significant selling pressure, it appears to be stabilizing after the initial shock.
Stock Forecasts
NVDA
Positive
The rebound from the recent sharp decline indicates a possible stabilization in Nvidia's stock price as investors rally around the AI segment, in which Nvidia remains a leader. While there is substantial competition emerging, the company's established presence and ongoing endorsements from analysts suggest that the company may recover further in the coming weeks. Retail investors buying the dip signals confidence in the stock moving forward.
Related News
The DeepSeek AI chatbot burst onto the scene: are fears about it overblown?
Jan 28, 2025, 6:00 AM
Chinese AI startup DeepSeek's release of new AI models spurred a selloff in U.S. tech stocks, but some investors think the competitive concerns may be overblown.
Tech Stock Sell-Off Eases After DeepSeek Scare
Jan 28, 2025, 1:55 AM
Investors around the world are reassessing the prospects for technology companies after a Chinese artificial intelligence start-up rocked markets in the United States on Monday.
US tech shares recover some losses from steep DeepSeek selloff
Jan 28, 2025, 12:24 PM
NEW YORK/BENGALURU/LONDON (Reuters) -Technology shares on Tuesday regained some ground lost and AI chip leader Nvidia rose more than 6% after the previous day's record-breaking wipeout sparked by a low-cost Chinese artificial intelligence model that threatens the dominance of U.S. rivals. On Monday, Nvidia lost about 17% or close to $593 billion in market value - a record one-day loss for any company, while shares of companies in semiconductor, power and infrastructure companies exposed to AI collectively shed more than $1 trillion. Monday's selloff was prompted by the release of a free AI assistant launched by China's DeepSeek last week that the startup said uses less data at a fraction of the cost of incumbent services.