Topline
Key U.S. chips and AI stocks mounted a recovery in premarket trading early Tuesday, after being heavily routed a day earlier amid a market panic triggered by the successful launch of Chinese startup DeepSeek’s latest AI model, which raised questions about U.S. leadership in the space.
Nvidia and some other AI stocks recovered slightly in premarket trading on Tuesday after Monday’s … More
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Key Facts
Shares of chip maker Nvidia—the flagship AI stock whose chips help power several key AI models—were up 3.08% to $122 in premarket trading after facing a record single-day market cap wipeout on Monday.
Other top silicon stocks also trended upwards, with chip maker Broadcom and ARM’s shares rising 2.56% and 2% in the premarket respectively, while shares of ASML—which manufactures the world’s most advanced chip-making machines—edged up 0.3% after markets opened in Europe.
Shares of Oracle, which is part of the $500 billion Stargate Project, also rose by 1.1% to $160 in premarket trading on Tuesday after being hit by a major selloff on Monday.
The tech-centric Nasdaq 100 Futures was up 0.1% to 21,280.00 early on Tuesday, while the S&P 500 Futures remained flat.
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What Has Nvidia Said About Deepseek And Its Impact?
In an emailed statement on Monday afternoon, Nvidia spoke positively about DeepSeek’s latest AI model, saying its work represented “excellent AI advancement” and showed how new AI models can be created using techniques that leverage “widely-available models” while also using hardware that is compliant with U.S. export controls.
Big Number
$589 billion. That is the total loss in Nvidia’s market cap caused by Monday’s selloff. This is the biggest single-day loss in any company’s valuation in history and more than double the previous record—when the chip maker lost $279 billion on Sept. 3 last year.
Further Reading
DeepSeek Panic Live Updates: Nvidia And Other Chip Stocks Rise In Premarket After Monday’s Rout (Forbes)
DeepSeek Rattles Tech Stocks: Chinese Startup’s Rise Against OpenAI Challenges U.S. AI Lead (Forbes)