While companies like DeepSeek may find success in certain market segments, they face an uphill battle against this massive capital advantage. In other words, claims that demand for Nvidia's premium chips will collapse simply don't align with market realities and the trajectory of AI development.

Chip stocks in the U.S. and Europe rose on Wednesday for a second straight day, recovering from a punishing selloff triggered by China's low-cost DeepSeek artificial intelligence tool at the start of the week.

Nvidia (NASDAQ: NVDA) stock has been getting crushed today and has plunged over 17.4% in Monday trading. This is the biggest single-day drop for NVDA since the tech selloff began in August. Why? DeepSeek.

Shares of Nvidia (NASDAQ: NVDA) spiked Tuesday. The company's stock gained 8.9% as of market close. The move up comes as the S&P 500 and Nasdaq Composite gained 0.9% and 2%, respectively. Nvidia's stock felt some relief after a major sell-off on Monday that was spurred by a new AI entrant,

US-based tech heavyweight NVIDIA Corporation (NASDAQ:NVDA) saw its shares collapse yesterday, ultimately losing more than a sixth of its value. The drop was a direct result of the unexpected rise of a Chinese artificial intelligence (AI) app,