NVDA: Nvidia Stock Rebounds 9% as Retail Traders Move from DeepSeek to Dip Seek

Whopping 17% drop is too good to pass on — retail traders jammed more than $560 million into Nvidia just as it was shedding hundreds of billions of dollars.

💰 Nvidia, the Traders’ Choice

• Nvidia stock NVDA recovered a big chunk of Monday’s loss as daring retail traders couldn’t miss the opportunity to seek the dip after DeepSeek. While the chipmaker was falling head first to start the trading week, down 17%, or $589 billion, retail investors poured more than $560 million into the bruised shares.
• After all, Nvidia is every retail trader’s top stock, which explains why they were scooping up what institutional investors were dumping.

🤑 Retail Investors Get Paid

• This strategy may have very well worked for the retail corner of the stock market. Nvidia jumped roughly 9% on Tuesday as concerns around DeepSeek’s bombshell announcement eased. Now markets are eager to see whether DeepSeek could actually prove what they said (which caused investors to question their own choices).
• Quick catch-up: China’s AI startup DeepSeek unveiled its artificial intelligence model called R1. The company said it could pretty much do everything ChatGPT can do but at a fraction of the cost.

🔥 Nvidia Challenged

• Nvidia got hurt the most as it is the only company selling AI chips to big tech titans which then use these chips to build out their AI infrastructure. But if DeepSeek’s claims are true, these tech titans would’ve been overpaying by a lot.
• Share price talk: with Tuesday’s rise, Nvidia shares are underwater by nearly 7% on the year. And with January doing its final lap, the chipmaker is looking into a challenging year where it needs to go above and beyond if it wants to keep investors satisfied.