Nvidia stock begins recovery after DeepSeek AI frenzy prompted near $600 billion loss

Nvidia (NVDA) stock rose as much as 2.6% premarket Tuesday as the AI chipmaker began to recover from a massive decline the prior day that shaved nearly $600 billion off its market cap.

Shares of the chipmaker later pared gains, up less than a percentage point after the market open.

Nvidia’s 17% freefall Monday was prompted by investor anxieties related to a new, cost-effective AI model from the Chinese startup DeepSeek. Some Wall Street analysts worried that the cheaper costs DeepSeek…