Nvidia Stock Climbs After Bruising Monday Session

Nvidia’s stock recovered today after a wild Monday. 

Shares of the chipmaking giant ended the session up nearly 9%, easily outpacing the rise in the S&P 500. Tuesday’s trading followed a start to the week that marked Nvidia’s (NVDA) worst day in years, as a roughly 17% drop led to a loss of nearly $600 billion in market value. 

Some of the questions that led investors to drop Nvidia and, broadly, back away from the AI trade remain. A reassessment of the trajectory of the artificial intelligence business, triggered in part by a jump in popularity of a Chinese app called DeepSeek, prompted worry about the lifespan of the multibillion-dollar spending trends that have helped propel a range of companies’ shares, from chip makers to energy companies, higher in recent months. 

On Wall Street yesterday—and today—many analysts and others saw Monday’s pullback as an opportunity to buy the dip. 

“We don’t expect any near-term disruption for our top AI semiconductor names,” Oppenheimer analysts wrote late yesterday, citing Nvidia, Broadcom (AVGO), Marvell Technology (MRVL) and Monolithic Power Systems (MPWR). “We expect all four to report upside results and outlook in the coming weeks.”

Still, the road back to Friday’s closing prices is long for many stocks hit that were hard yesterday.

“Investors may want to consider trimming their tech exposure, given the still-lofty valuations and potential uncertainties ahead,” said ProShares Global Investment Strategist Simeon Hyman.

This article has been updated since it was first published to reflect closing share-price information.