Nvidia was falling early Friday as politicians and Big Tech firms comment on the effects of Chinese firm DeepSeek’s apparently low-cost AI.

Nvidia and other U.S. AI stocks rebounded Tuesday after Monday’s DeepSeek-driven sell-off. Nvidia shares rose 9% but were still below Friday’s close. Analysts at Bernstein, Citi, Wedbush, and others suggested Monday’s sell-off was overblown,

NVIDIA Corporation NVDA has once again proven its resilience, rebounding 8.9% on Tuesday after a brutal 17% plunge on Monday. The sell-off was triggered by concerns that Chinese AI startup DeepSeek’s latest artificial intelligence (AI) model could reduce demand for NVIDIA’s high-powered graphics processing units (GPUs).

DeepSeek, the new player on the scene, is a Chinese company that has been making huge waves in AI development. Its powerful technology could change things such as healthcare, finance – and even the way we interact with the internet. Investors are excited because they see DeepSeek as a potential leader in shaping the next generation of AI tools.

Global investors staged a broad selloff in technology stocks on Monday, wiping out a staggering $593B in market value from Nvidia — an unprecedented one-day loss for any firm on Wall Street.