‘People don’t know what they own’: Experts explain DeepSeek-related record sell-off after Nvidia shares rise
‘People don’t know what they own’: Experts explain DeepSeek-related record sell-off after Nvidia shares rise
Share:
After a 17 per cent drop on Monday, the chipmaker’s shares rose nine per cent on Tuesday. Monday’s big tech sell-off in shares across the world stemmed from the release of an artificial intelligence model launched by DeepSeek - but on Tuesday, some of those worst-hit stocks bounced back.
With a short period of time for reflection and re-judgement since the initial shock, which saw AI chipmaker Nvidia in particular initially sink 17 per cent, analysts and investors are now giving their thoughts and theories on what happened and, more notably for future events, whether the initial reaction was right or wrong.
Nvidia’s drop in share price on Monday marked the biggest ever one-day loss in market value on Wall Street, of about $589bn (£473bn). A day later, the same company rose around nine per cent to claim back some of those losses. For additional context, including this week’s drop, Nvidia shares remain up 14 per cent across six months and 111 per cent across the past year following a huge rise between March and July.
So what of the initial sell-off? According to experts in the field, much of it stems from misinformation or a lack of understanding. Cohen’s Point72 hedge fund incorporates one fund, which has raised around $1.5bn (£1.2bn) to focus on AI-related assets.
