Nvidia's market capitalization experienced significant fluctuations following the launch of DeepSeek's R1 AI model. In late January 2025, Nvidia's stock price dropped by nearly 17%, leading to a loss of approximately $600 billion in market value.
This decline was attributed to investor concerns that DeepSeek's efficient AI model could reduce the demand for Nvidia's high-performance chips.
Despite this setback, Nvidia reported robust financial performance in the fourth quarter of 2024, with a 78% year-over-year revenue increase to $39.3 billion, surpassing Wall Street expectations.
As of January 2025, the company's total market value stood at $3.215 trillion, making it the second-largest company in the S&P 500 after Apple.
As of February 26, 2025, Nvidia's stock price was $124.92 USD, reflecting a modest increase from the previous close. The intraday high reached $125.11 USD, while the low was $116.54 USD.
In summary, while Nvidia faced a substantial market value decline following DeepSeek's AI model debut, the company demonstrated resilience with strong financial results and a recovering stock price.