After plunging on Monday, shares of the chip giant Nvidia were up more than 6% by midday trading, with analysts speculating that the US AI sell-off might have been an overreaction.
After DeepSeek claimed that their model was created at a fraction of the price of its competitors’, investors quickly changed their bets on AI, which caused the market to plummet.
The development, according to analysts, prompted concerns about the extent of investments that US companies are planned as well as the future of America’s dominance in AI.
In addition to calling the incident “a wake-up call” for the US IT sector, US President Donald Trump hinted that it might ultimately turn out to be “a positive” for the US.
