Nvidia stock rise has helped the chip maker to recoup a large chunk of its losses from the last week, when it witnessed a brutal selloff due to the Chinese start-up DeepSeek.

The emergence of a small Chinese artificial intelligence (AI) company called DeepSeek initially put a giant hole in the U.S. stock market. Tech stocks -- particularly those connected to the AI trend -- got crushed,

Roughly two weeks ago, China-based DeepSeek unveiled its open-source large language model (LLM), known as DeepSeek-R1, which is similar to ChatGPT, the chatbot developed by OpenAI that effectively sparked AI euphoria in late 2022.

The week was a rollercoaster ride for the tech industry, with significant developments in the AI sector and the stock market. The emergence of China's DeepSeek R1 artificial intelligence model coincided with a $600 billion decline in Nvidia's market value.

Artificial intelligence (AI) investing experienced a shakeup at the end of January with the release of DeepSeek's R1 model. This model was reported to have been trained far more cheaply than its U.S. counterparts and performed similarly in some areas. This caused a short-term panic in some AI stocks, but some have recovered.

Investors initiated a massive Nvidia stock selloff upon the release of DeepSeek, but here's why the Chinese AI might actually be bullish.

Pat Gelsinger, former CEO at Intel (INTC), is not sweating over new, low-cost artificial intelligence models from Chinese startup DeepSeek. Instead, he believes that DeepSeek’s cost-effective AI model will be a net positive for the industry.

Is this a major warning sign or a tremendous opportunity to buy the dip? Nvidia is far from finished powering the world of artificial intelligence (AI) or being relegated to obsolescence. Here are three reasons to snatch up the stock now.