Nvidia’s stock surged 1.7% on Tuesday, reversing its earlier decline of over 8%, as the broader AI market rebounded from a tariff-induced slump. The sector’s recovery was led by stocks like Super Micro Computer and Palantir, which also rose sharply.
The past month has seen AI stocks experience significant volatility due to concerns about inflation, tariffs, and their impact on interest rates. President Trump’s tariffs have reduced investors’ risk appetite, leading to triple-digit losses for some AI beneficiaries last year.
However, the recent developments surrounding Chinese start-up DeepSeek’s claim of developing a top-tier reasoning model without Nvidia’s chips has sparked renewed concern. U.S. cloud providers were initially hesitant to invest in Nvidia’s chips due to fears of increased spending on more efficient AI models.
Despite these concerns, analysts remain optimistic about Nvidia’s stock prospects. Wedbush analysts argue that demand for AI and Nvidia’s chips will increase as models become more efficient and less expensive, potentially benefiting the company. Investigations into potential export restrictions also suggest that tightening regulations could further boost Nvidia’s international sales.
Source: https://www.investopedia.com/nvidia-leads-ai-stock-rebound-after-shaking-off-trump-tariff-fears-11690801