Nvidia Stock Rebounds in Europe on AI Challenger Fears
Nvidia's stock surged in Europe on Wednesday, buoyed by hopes that the company could recover from recent losses triggered by the rise of China's DeepSeek AI tool.
Frankfurt-Listed Shares Surge
Nvidia's Frankfurt-listed shares jumped 2.7% in early trading, building on a 8.9% gain in New York on Tuesday.
DeepSeek's AI Challenger Concerns
The emergence of DeepSeek's AI suite had raised concerns about competition, not only from established players like ChatGPT and OpenAI, but also as an indication of declining development costs. This led to a 17% plunge in Nvidia's shares on Monday, costing the company nearly $600 billion in market value.
Rebound Amidst Fears Subside
However, as fears of DeepSeek's impact eased, Nvidia's stock began to rebound. The company's strong financial performance and continued leadership in AI technology remained key drivers of investor confidence.