At the start of the week, the emergence of DeepSeek AI had all of Wall Street in a state of panic. One of the most affected companies was the industry leader, Nvidia (NVDA), although its 12% drop to start the week, as experts are saying that comeback could be in store.
It wasn’t just its share price that was affected, as the AI chipmaker lost $600 billion in market cap. The falling value was the greatest single day lost in the stock market history, with many concerned about its prospects. However, bouncing back 6% already Tuesday, there are many who believe the start of the week may be an outlier.
Also Read: Nvidia’s $600B Stock Crash: How DeepSeek’s AI Breakthrough Shook the Market
Nvidia (NVDA) Could Bounce Back to Epic Heights as DeepSeek AI Panic Subsides
The arrival of 2025 brought with it big expectations for one of the leading US stocks. Indeed, Nvidia was projected to repeat last year’s performance and be a big winner on Wall Street. With the company surpassing Apple (AAPL) as the largest by market cap earlier this month, that looked to be coming to fruition.
However, that took a turn this week. Indeed, the company lost a record value in its market value as DeepSeek AI induced renewed panic. However, things are already looking up. Moreover, Nvidia (NVDA) is widely expected to make an epic comeback, according to experts.
Also Read: Nvidia Passes Apple in Market Cap: How Trump Helped Drive the Stock
The biggest reason why the company is expected to continue its dominance is that many of the world’s biggest tech companies are buying Nvidia GPUs. Additionally, a recent report suggests that its supply could be sold out for the next year.
The big reason for the stock sell-off was tied to DeepSeek’s claim that they built their AI model with just $5 million. However, that has already come under scrutiny. Bernstein was the first to discuss this facet. When noting the claims, the firm said, “Of course not.”
Additionally, there is still a belief in Nvidia use cases. As Wedbush analyst Dan Ives notes, “Launching a competing large language model (LLM) for consumer use cases is one thing.” Yet, what the AI chipmaker does on the business side is completely different. Therefore, the stock is projected to regain its form and even surge as its value is reinforced by increased competition.
