Key Takeaways Nvidia shares tumbled Wednesday, dashing hopes for a quick recovery from losses earlier in the week amid concerns about competitiveness of American AI firms and their spending on artificial intelligence.

Nvidia stock has had a wild week so far, and now the market seems unsure of what’s next for the world’s leading chip maker.Shares made a strong 9% comeback Tuesday after a 17% drop on Monday. The stock was trading down 0.

Nvidia shares' 9% recovery Tuesday was the second-best day in terms of market cap added for any company ever, trailing only a record it set in July.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Chuck Zodda, managing partner and Chief Investment Officer from the Armstrong Advisory Group discusses the dip of tech stocks, especially Nvidia after the announcement of Chinese AI start-up DeepSeek.

Nvidia stock surged as the AI chipmaker began to recover from a massive decline the prior day that shaved nearly $600 billion off its market cap.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.

The market reaction proved particularly severe for Nvidia (NASDAQ: NVDA), with shares plummeting and erasing half a trillion in market cap at the time of this writing. To put this staggering figure in perspective,

Nvidia lost more market value Monday than the total valuations of American stalwarts UnitedHealth, Costco and Bank of America.

U.S. stocks recovered some ground on Tuesday after getting hammered by fears over China's DeepSeek AI model built on a shoestring budget.