Brian Colello at Morningstar maintained his target price of $130 per share on Nvidia stock following the DeepSeek news. "We doubt the leading cloud vendors and AI builders will pause their plans," he wrote in a note to clients. "We still think tech firms will continue to buy all the GPUs they can as part this AI gold rush."

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Nvidia shares ended the day 17% lower, notching their worst one-day performance since March 2020 and closing solidly below the 200-day moving average. The decline erased $589 billion in market value, a record drop.