When OpenAI released ChatGPT in 2022, companies started spending billions on GPUs to train AI models. Nvidia led the market for graphics processing units (GPUs), so it was the right company at the right time to deliver monster returns to investors.

Since the start of 2023, Nvidia 's (NASDAQ: NVDA) stock has gained an astronomical 906% as of the time of writing. It's also right around its all-time high right now, but these two facts may scare some investors off. The common thought is, "Nvidia has risen so much already; how can it increase more?"

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.

Shares of Nvidia (NASDAQ: NVDA) spiked Tuesday. The company's stock gained 8.9% as of market close. The move up comes as the S&P 500 and Nasdaq Composite gained 0.9% and 2%, respectively. Nvidia's stock felt some relief after a major sell-off on Monday that was spurred by a new AI entrant,

US stocks and shares in chip-making giant Nvidia on Tuesday clawed back some of their losses following a steep sell-off a day earlier triggered by the sudden success of Chinese

A Chinese startup’s latest affordable artificial intelligence (AI) chatbot sent NVIDIA Corporation’s NVDA shares into a tailspin, erasing half a trillion in market capitalization. However, the widespread anxiety among NVIDIA investors is overblown.

Fears regarding the rise of artificial intelligence (AI) chatbot DeepSeek may be overblown. The post Why Nvidia stock just rallied appeared first on The Motley Fool Australia.