Nvidia’s rally shows DeepSeek fears were unfounded a year later

Market Intelligence Analysis

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Why This Matters

Nvidia's market value plummeted by $589 billion after a perceived threat from AI model DeepSeek, but the company has since recovered and the fears appear to be unfounded.

Market Impact

Market impact analysis based on bullish sentiment with 80% confidence.

Sentiment
Bullish
AI Confidence
80%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

DeepSeek erased a record $589 billion from Nvidia Corp.’s market value in one day after the company revealed an AI model thought to be comparable to those of OpenAI and Meta Platforms Inc. and developed at a fraction of the cost. Nvidia’s double-digit plunge led the S&P 500 Index 1.5% lower, while the tech heavy Nasdaq 100 Index shed 3%.

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Original article published by Yahoo Finance on January 26, 2026.
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