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Stock Market News: Nasdaq Bouncing Back, as Nvidia Claws Back Some Losses

Joel South

Published: January 28, 2025 3:00 pm

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Investors buying the AI dip

3:00 pm

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At 3 PM eastern, the Nasdaq Composite Index rebounded by approximately 1.2%, recovering from the previous day’s decline triggered by concerns over Chinese AI company DeepSeek.

Here’s an updated performance summary of key chip stocks:

Company	Ticker	Price (USD)	Change (%)
NVIDIA	NVDA	127.32	+7.51
Taiwan Semiconductor (TSM)	TSM	201.35	+4.70
Arm Holdings	ARM	148.80	+1.95
Broadcom	AVGO	207.38	+2.60
Advanced Micro Devices	AMD	114.69	-0.28
Intel	INTC	19.93	-1.77
Micron Technology	MU	89.06	-2.25
Super Micro Computer	SMCI	28.23	-2.91

Notably, NVIDIA and Taiwan Semiconductor have seen significant gains, suggesting renewed investor confidence.

That same confidence has not been placed in Intel or Micron.

Citi Still Bullish on NVIDIA

12:19 pm

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Citi analyst Atif Malik stated NVIDIA believes DeepSeek’s models are an “excellent advancement for AI” according to a report from Bloomberg. NVIDIA stands to be a beneficiary of DeepSeek’s innovation and could lead to newer inference opportunities that could lead to a large number of graphics processing units.

Citi maintains its “Buy” rating on NVIDIA with a $175 price target, which is a 40% gain from the stock’s current price of $124.86.

Stock markets are slowly beginning to bounce back from Monday’s AI stock-driven selloff, as investors recover from their shock over the “Sputnik moment,” the discovery that China has an AI startup that can build large language models much, much cheaper, and much, much faster, than anyone in the West has accomplished so far.

At the 11:30 a.m. ET mark, the Dow, which actually rose a bit yesterday, is still up 0.1%, while the S&P 500 is up 0.4%, and the Nasdaq, hit hardest yesterday, is bouncing back fastest today, and up a solid 1%.

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As you might expect, Nvidia (Nasdaq: NVDA) is one of the most traded stocks so far today. Shares of the semiconductor titan suffered a staggering 17% selloff on Monday. Investors worried that demand for the company’s chips might wane if China has figured out a way to “do AI” with many fewer chips than usual, and with chips less capable than the ones Nvidia churns out.

Investors still seem to think that’s likely, as Nvidia has not yet come close to recovering all of Monday’s losses. Still, the stock is up a modest 2.8%. That’s better than it could have been.

In other news, Jetblue (Nasdaq: JBLU) stock is taking a big hit, down 25.9%, after reporting earnings this morning. Jetblue reported better than expected sales and fewer losses than expected for its fourth fiscal quarter of 2024. The company nonetheless lost money, $0.21 per share pro forma.

SoundHound AI (Nasdaq: SOUN) is similarly taking it on the chin. Shares of the text-to-speech-to-text AI company fell 12.6% after filing a $500 million mixed securities shelf registration with the SEC, aiming to raise cash as it continues burning through its savings at the rate of $90 million a year.

Circling back to semiconductors news, Intel (Nasdaq: INTC) stock is losing 2% today. Not as big a player in AI chips as Nvidia turned out to be a blessing in disguise for Intel yesterday, when the stock lost only 2.6%. Today, however, Intel stock is getting no bounce-back at all. Instead, its shares are falling as investors take a breath, and look around for other semiconductor stocks not named “Nvidia” to sell.

Maybe investors will figure that out tomorrow, and bid Intel stock back up.