Nvidia (NVDA) shares recovered from early morning Tuesday as AI stocks shook the tariff shock that sent a wider market involvement.
Nvidia’s shares rose 1.7% on Tuesday after falling over 8% yesterday and trading 4% lower in pre-market trading today. AI server maker Super Micro Computer (SMCI) fell 13% yesterday, gaining 8.5%. The two led a wide range of AI rallies, with advances in Wall Street Darling Palantil (PLTR) and Vistra (VST).
AI stocks have been riding Wild for the past month. Concerns about the outcome of stubborn inflation and President Donald Trump’s tariffs have cast a fog on the market’s outlook for both the US economy and interest rates. Headlines from Washington eased risk appetite that last year promoted triple-digit benefits for AI beneficiaries such as Palantir, Vistra and Applovin (APP).
Nvidia’s stock was under pressure last month by claims by Chinese startup Deepseek that it developed a top-notch inference model without Nvidia’s most powerful chips. The revelation initially sparked concerns that US cloud providers could focus on creating more efficient AI to reduce spending on chips and servers, but since then, large tech companies have endured plans to invest hundreds of billions in AI infrastructure.
Deepseek is leading the US and other countries to investigate whether Chinese developers are illegally obtaining Nvidia chips. Singapore is reportedly investigating whether servers containing advanced Nvidia chips were illegally routed to Deepseek after being sold to local businesses. The investigation forces the Trump administration to further tighten export restrictions and places emphasis on Nvidia’s international sales.
Despite all concerns, analysts are still pretty bullish about Nvidia’s stock. Wedbush analysts even claim Nvidia will benefit from Deepseek. They argue that as models become more efficient and cheaper, demand for AI and Nvidia chips will increase.
