Nvidia Stock Soars 5% As Traders Buy $560M NVDA Shares Amid DeepSeek-Led Rout

Nvidia stock price surged 5.4% in the pre-market session today, giving relief to investors after a massive decline in the prior session. Notably, Nvidia lost nearly $600 billion from its market valuation on Monday, marking the highest one-day drop for any firm on Wall Street. However, it appears that the retail investors took the opportunity to buy the dip, which has helped the recovery in the NVDA stock today.

Meanwhile, the prior dip comes amid a broader global market selloff as China’s AI startup DeepSeek threatens US dominance in the AI sector. Also,

Nvidia Stock Price Soars As Traders Buy $560M NVDA Shares

Nvidia stock price has gained notable traction this week, especially as NVDA price declined nearly 17% in the prior session. The NVDA stock closed at $118.42 on Monday, January 27. However, it appears that the investors are still maintaining a bullish outlook on the long-term trajectory of the asset.

In the pre-market session today, NVDA stock price soared over 5%, signaling increasing confidence of the traders. Besides, the retail investors are also on a buying spree, which appeared to have helped in the recent gains of the Chip maker’s stock.

For context, in a recent X post, Walter Bloomberg said that retail investors purchased a “record $562.18 million in NVIDIA Stock” during Monday’s tech rout. Notably, the X handle cited the VANDA Research report for the accumulation trend.

Global Tech Market Faces Massive Selloff Amid DeepSeek Saga

Nvidia wasn’t the only Wall Street player taking the hit yesterday. For context, the global tech market, especially the AI-focused firms, faced massive selling pressure on Monday as Chinese AI startup DeepSeek made headlines with its low-cost efficacy. Notably, China’s AI firm potentially challenged OpenAI while securing the top rank in the Apple store.

A flurry of recent reports suggests that the AI firm showed more efficiency than the US AI firms at a lower cost. This has sparked questions among investors if Nvidia will have to adjust its pricing strategies for GPUs ahead. Notably, this price cut, if happens, could significantly dampen the investors’ sentiment.

What’s Next For NVIDIA Stock Price?

The recent NVDA stock price rally in the early US hours indicates that investors are regaining confidence in the asset. However, it’s worth noting that DeepSeek is still making headlines with the recent developments, with a flurry of tech enthusiasts shifting focus towards the Chinese startup from the US firms.

Notably, OpenAI’s Sam Altman recently lauded DeepSeek’s R1 model launch, acknowledging the firm’s innovation and strength. Despite initial concerns, Nvidia views DeepSeek’s AI breakthroughs as a positive development, highlighting the usefulness of its chips in the Chinese market.

The chip maker expects increased demand for its chips to support DeepSeek’s services. A Reuters report, citing the company’s statement, eased investor concerns, which had led to a 17% stock tumble. Nvidia’s outlook suggests that DeepSeek’s advances could ultimately benefit the company, potentially driving growth in the Chinese market and stabilizing Nvidia stock price.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
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