Nvidia (NASDAQ: NVDA) benefited enormously from the increased investment in chips for artificial intelligence (AI), but news out of China is causing investors to wonder if the stock's high valuation is worth it ahead of potential risks to the massive investment big tech companies have put into data center infrastructure.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.

DeepSeek just shook up the artificial intelligence (AI) world in the biggest way since OpenAI launched ChatGPT in late 2022. The Chinese company's new R1 large language model (LLM) reportedly matches or beats OpenAI's o1 model on some benchmarks.

the chip maker saw its market value drop by $593 billion, the biggest one-day drop for any listed company on record.

Nvidia stock surged as the AI chipmaker began to recover from a massive decline the prior day that shaved nearly $600 billion off its market cap.

Nvidia stock has had a wild week so far, and now the market seems unsure of what’s next for the world’s leading chip maker. Shares made a strong 9% comeback Tuesday after a 17% drop on Monday. The stock was trading down about 0.

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).