Nvidia Corp (NASDAQ:NVDA, ETR:NVD) edged higher on Tuesday as the week's early global tech sell-off appeared to peter out.
Having been the victim of heavy selling over jitters sparked by the release of DeepSeek’s artificial intelligence bot last week, shares ticked up 0.7%% to reach US$119.21 early on.
Shares had dropped by almost 17% on Monday, sending Nvidia’s market cap spiralling by nearly US$600 billion.
Swissquote Bank analyst Ipek Ozkardeskaya noted Monday’s sell-off may have been “overdone”.
“There are reports praising DeepSeek’s performance, some experts say it’s impressive, others say it’s disruptive, and Nvidia itself said that the company came up with something ‘excellent’ – using a lot of its less advanced chips.
“But beyond the fact that the company used less advanced and cheaper Nvidia chips to build its model, there are a lot of unanswered questions about DeepSeek, including whether its model could be integrated and used by other applications and whether the company really built a model for less than US$6 million.
“DeepSeek looks like it made something that already existed for a cheaper price. But it did not come up with an end product that did not exist.”
Monday's decline had seen retail investors swoop for a record amount of Nvidia stock, according to Vanda Research data.
Retail purchases hit a net US$562.2 million on Monday, reflecting the most substantial amount on records dating back to 2014.