A Chinese company’s claim of a $5.6 million artificial intelligence breakthrough wiped almost $600 billion from Nvidia’s market value on Monday, shattering Wall Street’s confidence that tech companies’ AI spending spree will continue and dealing an apparent blow to US tech leadership.

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.

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

US stocks and shares in chip-making giant Nvidia on Tuesday clawed back some of their losses following a sell-off triggered by the sudden success of Chinese artificial intelligence firm DeepSeek.

KEY TAKEAWAYS Nvidia and other artificial intelligence stocks at the forefront of the AI revolution are rebounding somewhat Tuesday after a selloff triggered by Chinese startup DeepSeek’s launch of a cutting-edge model at a fraction of the cost of its U.

US stocks and shares in chip-making giant Nvidia on Tuesday clawed back some of their losses following a steep sell-off a day earlier triggered by the sudden success of Chinese artificial intelligence firm DeepSeek.

Nvidia on Monday said Chinese AI firm DeepSeek's advances show the usefulness of its chips for the Chinese market and that more of its chips will be needed in the future to meet demand for DeepSeek's services.