March 5 - Nvidia (NVDA, Financial) rebounded on Tuesday as the broader AI sector recovered from recent tariff-induced shocks. Shares climbed about 1.7% after tumbling over 8% yesterday and trading roughly 4% lower in premarket activity. AI server maker Super Micro Computer (SMCI, Financial) also bounced back, rising 8.5% after a 13% decline, while Palantir (PLTR, Financial) and Vistra (VST, Financial) added gains.
Investors have been jittery over the past month amid concerns about stubborn inflation and the impact of President Trump's tariffs on the U.S. economy and interest rates. Nvidia's stock was further pressured by claims from Chinese startup DeepSeek, which asserted it developed a top-tier reasoning model without Nvidia's most advanced chips.
These allegations are causing U.S. and Singapore investigations into whether illegal chip transfers occurred, increasing the risk of stiffening export restrictions. However, despite the difficulties, the big tech companies have been putting in the hardware to develop the needed AI infrastructure and this points in the direction of a cautious but optimistic view over the area.
