Why Nvidia Stock Rallied on Tuesday

Shares of Nvidia (NASDAQ: NVDA) surged higher on Tuesday, after taking it on the chin Monday. The maker of graphics processing units (GPUs) used for artificial intelligence (AI) applications gained as much as 7.2%. As of 1:30 p.m. ET, the stock was still up 7.1%.Investors have had a day to digest the news about reported AI developments in China -- and cooler heads are beginning to prevail.Nvidia stock was crushed yesterday following reports that Chinese AI start-up DeepSeek developed an AI model that delivered comparable results to existing chatbots at a fraction of the cost. The model, dubbed R1, reportedly used far fewer computing resources and was developed using older, less advanced AI chips.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool