As of market close, the company’s shares recouped more than half of the loss they posted on Monday, their largest one-day drop ever, rising more than 8.8 per cent, to US$128.86.
Some analysts see Monday’s sharp sell-off for Nvidia and the broader tech industry as “overdone” and point out that Nvidia’s chips may have been instrumental in DeepSeek’s success.
“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,” said Swissquote Bank analyst Ipek Ozkardeskaya, who added that Monday’s sell-off may have been “overdone”.
“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,” Ozkardeskaya said.
