Following the market plunge triggered by the release of the DeepSeek chatbot, Nvidia has recovered a large portion of its losses.

DeepSeek’s claim that it has found a lower cost way to create AI models has made software stocks a hot trade. The sudden emergence of DeepSeek’s model at first sent stocks with deep ties to the AI revolution into a nose dive on concerns that efficiency improvements could lead to reduced hardware spending.

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Some analysts cite company's possible role in DeepSeek's success and call share price drop 'overdone' American semiconductor giant Nvidia's stock price erased some of its massive loss sustained a day earlier on fear that Chinese companies were poised to surpass America in the competition with China for artificial intelligence supremacy,