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Nvidia share price recovered on Tuesday after a sharp slump in the previous session caused by concerns over China’s DeepSeek. Nvidia shares ended 8.82% higher at $128.
86 on Nasdaq. Nvidia stock price rally led a 2% rally on Nasdaq. The recovery in AI darling Nvidia shares came a day after the stock saw a sharp 17% drop, erasing about $593 billion from its market value in the biggest single-session loss for any company on Wall Street .
This led Nvidia’s forward price-to-earnings ratio to hit its cheapest since December 2023. The sell-off in Nvidia shares on Monday was on the back of concerns over Chinese startup DeepSeek’s launch of AI models, which it said were on a par or better than industry-leading US rivals at a fraction of the cost. As Nvidia stock recovered on Tuesday, options traders quickly piled back into bullish Nvidia contracts.
The selloff in the previous session jolted investors long used to the stock climbing ever higher, but options traders were already seizing the opportunity to position for a rebound, Reuters reported. On Tuesday, Nvidia call options outnumbered put options 1.6 - to - 1, nearly in line with the 1-year average, after dipping to a more than two-month low of 1.
36 - to - 1 on Monday, the Reuters report said. Nvidia stock technicals According to Mahesh M Ojha, AVP — Research at Hensex Securities, Nvidia stock price still looks weak on the technical charts. “So, one should avoid bottom fishing in Nvidia stock and existing shareholders are advised to hold the scrip with a strict stop loss at $105 apiece.
Nvidia shares may trade in the range of $105-135. The stock is not expected to break the $135 level on the upside. If it breaches below $105, the stock may see $90 level.
Hence, I recommend ‘sell on rise’ strategy for Nvidia shares,” said Ojha. Wall Street Rebounds The gains in Nvidia stock price came in line with the broader rebound in the US stock market led by a rally in artificial intelligence-linked technology stocks. The Dow Jones Industrial Average rose 136.
77 points, or 0.31%, to 44,850.35, the S&P 500 gained 55.
42 points, or 0.92%, to 6,067.70 and the Nasdaq Composite gained 391.
75 points, or 2.03%, to 19,733.59.
The S&P 500 technology sector rallied 3.6% in its biggest daily percentage gain since July 31, while an index of semiconductor shares gained 1.1%.
(With inputs from Reuters) Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions..
