Nvidia Rebounds After DeepSeek Shock, Eyes AI Growth Potential

The tech giant recovers 90% of its market cap loss as analysts highlight strong AI chip demand and upcoming earnings report.

Nvidia has regained 90% of its $600 billion market cap loss caused by the January launch of DeepSeek's low-cost AI model, which briefly disrupted investor confidence.
Analysts remain optimistic about Nvidia's long-term prospects, citing robust demand for AI chips and the company's dominance in the AI accelerator market.
Global spending on AI infrastructure is surging, with major investments from South Korea, the European Commission, and Big Tech companies like Microsoft and Meta fueling demand for Nvidia's GPUs.
Concerns remain about potential competition from DeepSeek and delays in Nvidia's Blackwell chip technology, but analysts predict continued growth in AI-driven revenue streams.
Nvidia's February 26 earnings report is expected to shed light on its financial performance and how it plans to navigate rising competition and maintain market leadership.