The successes of the Chinese startup Deepseek in creating an effective language model with moderate costs this week were noted even by direct competitors in both business and geopolitical. The reaction of the Western stock market, which initially collapsed, was replaced by growth on the second day. NVIDIA shares, for example, on Tuesday managed to rise in price by almost 9 %.
Image source: NVIDIA
Of course, in the case of NVIDIA, the company’s shares failed to play all the fall of Monday, which was measured 17 %, but the change in the vector of movement definitely inspired investors. On Monday, the capitalization of NVIDIA fell on a record $ 595 billion. Obviously, this allowed someone to acquire the company’s shares at a lower price, and now the resumption of growth allows us to count on profit in the future. Moreover, compared to the beginning of the week of the NVIDIA share is still more than 9 % cheaper. Compared to the historical maximum achieved in January, NVIDIA shares are 23 %cheaper. The amount of trading these securities on Monday reached $ 562.2 billion. The number of applications for the purchase was twice as high as for sale.
Representatives of Barclays said that evidence of the possibility of creating effective language models with lower costs is actually a favorable factor for emitators of the NVIDIA type, because the distribution of artificial intelligence systems due to this will only accelerate, which means that the company’s products will be stable.
As Reuters supplements, the stock indices as a whole returned to Tuesday growth, digesting the news about the successes of Deepseek, but they have not yet been able to compensate for the recent fall. Oracle shares increased in price by 3.6 % after falling by 13.8 %, in the case of Marvell Technology, the rebound reached 3.5 % after falling by 19 %. Boadcom securities have grown in price by 2.6 % after a decrease by 17.4 %. But ASML shares in Europe continued to fall, although they limited themselves to 1 % decrease on Tuesday after 6 % of Monday.