Investors who purchased Nvidia (NASDAQ: NVDA) shares immediately after the DeepSeek-related market crash on January 27, 2025, have realized substantial gains.
For example, a $1,000 investment at $118 per share on the day of the crash would have acquired approximately 8.47 shares. By January 23, 2026, with Nvidia trading at $184 per share, that position would be worth about $1,580, reflecting a $580 profit and a 58% return.
The DeepSeek market crash occurred, following a sharp sell-off in technology stocks triggered by the release of advanced AI models from the Chinese startup DeepSeek.
Its low-cost, high-performance models (including R1 and V3) raised investor concerns about eroding U.S. leadership in AI and dampening demand for costly hardware from firms such as Nvidia, prompting widespread sector-wide selling.
Nvidia was hit hardest during the crash, falling nearly 17% in a single session and losing roughly $600 billion in market value, the largest one-day loss in Wall Street history. Broader markets also declined, with the Nasdaq down 3.1%.
Nvidia stock’s recovery path
Indeed, the American technology giant began recovering the next day with a nearly 9% rebound, as investors judged the sell-off to be an overreaction.
In the following months, the stock appreciated steadily due to sustained demand for high-performance GPUs in AI training and inference.
Strong quarterly results highlighted resilient data center revenue, supported by partnerships with major U.S. technology firms expanding AI infrastructure.
At the same time, the chipmaker’s advancements in chip design and software ecosystems further reinforced its position, while sentiment shifted toward the view that more efficient AI models would expand overall adoption rather than reduce hardware demand.
Meanwhile, enthusiasm around DeepSeek subsided. Subsequent model updates were incremental and limited access to advanced computing, worsened by U.S. export controls, delaying major releases such as the anticipated R2 model.
Geopolitical tensions also discouraged Western enterprises from adopting Chinese AI solutions, constraining commercial impact.
Simultaneously, U.S. competitors such as OpenAI and Google strengthened their ecosystems with integrated tools and enterprise-grade reliability, diminishing DeepSeek’s cost-driven appeal.
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