Shares of Nvidia ( NVDA 6.97%) surged higher on Tuesday, after taking it on the chin Monday. The maker of graphics processing units (GPUs) used for artificial intelligence (AI) applications gained as much as 7.2%. As of 1:30 p.m. ET, the stock was still up 7.1%.

Shares of Nvidia (NVDA) tumbled Monday after the release of a sophisticated artificial intelligence model from a Chinese startup prompted a reckoning on Wall Street regarding AI spending. Chinese company DeepSeek last week released R1,

What Happened? Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) fell 13% in the morning session as stocks heavily tied to the AI market took a hit after Chinese artificial intelligence startup DeepSeek released a new large language model (DeepSeek-R1) that ranks competitively on key global benchmarks (coding competitions,

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.

DeepSeek's emergence is shaking up investor confidence of the AI story that has been lifting the U.S. bull market in the past two years.

Chuck Zodda, managing partner and Chief Investment Officer from the Armstrong Advisory Group discusses the dip of tech stocks, especially Nvidia after the announcement of Chinese AI start-up DeepSeek.

DeepSeek's new AI model has sparked concerns about Nvidia's dominance in the AI hardware market, causing a drop in the chipmaker's stock and raising questions about the future of high-performance AI chips.

The app has overtaken ChatGPT to become the top free application on Apple's App Store in the UK.