Nvidia Shares Rebound 9% After Record $600 Billion Stock Value Loss

The tech giant faced a historic market drop due to competition fears but recovered partially following investor confidence in its AI dominance.

Nvidia's stock suffered a record $600 billion market value loss on Monday, dropping 17% due to fears of competition from China's Deepseek AI model.
Deepseek, developed by a Chinese hedge fund manager, offers capabilities comparable to OpenAI's ChatGPT but at significantly lower operating costs.
The launch of Deepseek triggered a broader sell-off in tech stocks, with companies like Broadcom and Microsoft also seeing substantial declines.
Nvidia's market value rebounded by $281 billion on Tuesday as its stock surged nearly 9%, reflecting renewed confidence in its AI chip market leadership.
Experts debate whether the recent events signal a potential AI bubble, drawing parallels to the Dotcom crash of the early 2000s but noting key differences in market fundamentals.