Nvidia shares rebounded 9% on Tuesday after plummeting 16% on Monday amid concerns over Chinese AI startup DeepSeek’s low-cost AI models. The sell-off erased nearly $600 billion in Nvidia’s market value, but former Intel CEO Pat Gelsinger dismissed fears as overblown. He argued that DeepSeek’s success proves AI’s growth potential rather than threatening industry leaders, likening it to the affordability-driven expansion of PCs and mobile phones. While DeepSeek’s cost-efficient AI has sparked speculation of a price war, Gelsinger maintains that cost reductions drive innovation. Nvidia’s quick recovery reflects ongoing uncertainty over AI’s future and investors’ long-term outlook.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02NVIDIA shares rebounded 9% on Tuesday after plummeting 16% on Monday amid concerns over
00:08Chinese AI startup DeepSeek's low-cost AI models. The sell-off erased nearly $600 billion in
00:13NVIDIA's market value, but former Intel CEO Pat Gelsinger dismissed fears as overblown.
00:19He argued that DeepSeek's success proves AI's potential growth rather than threatening
00:23industry leaders, linking it to affordability-driven expansion of PCs and mobile phones.
00:29While DeepSeek's cost-effective AI has sparked speculation of a price war,
00:33Gelsinger maintains that the cost reductions drive innovation. NVIDIA's quick recovery
00:38reflects ongoing market uncertainty over AI's future and investor long-term outlook.