Nvidia shares saw a strong 8.82% increase, closing at $128.86 on Tuesday, following a sharp 17% drop the previous day.
The stock’s recovery came after concerns over DeepSeek, a Chinese AI startup, caused a massive sell-off.
Nvidia’s market value had plummeted by about $593 billion, marking the largest single-session loss in Wall Street history.
Nasdaq Gains on Nvidia’s Recovery
Nvidia’s rally helped fuel a 2% rise in the Nasdaq Composite, which gained 391.75 points, closing at 19,733.59.
The recovery in Nvidia’s stock was part of a broader rebound in AI-related tech stocks, with the S&P 500 technology sector gaining 3.6%.
Technical Outlook for Nvidia
Despite the rally, Mahesh M Ojha, AVP of Research at Hensex Securities, advised caution, suggesting a “sell on rise” strategy. He sees Nvidia’s stock trading between $105 and $135, with $105 as a critical support level.
Options Market Activity
As Nvidia shares recovered, options traders quickly returned to bullish positions, with call options outnumbering put options by a 1.6-to-1 ratio. This was a rebound from the previous day’s low of 1.36-to-1.
Broader Market Trends
The broader U.S. stock market also saw gains, with the Dow Jones up 0.31% and the S&P 500 rising 0.92%.
Follow on Google News
Leave a comment