DeepSeek has shaken up the AI world, raising questions about its capabilities, and security risks. But the future of AI still relies on American silicon despite the hype.

Apple emerges as a “relative winner” as DeepSeek shifted investor narratives on AI, wrote Morgan Stanley analysts led by Brian Nowak in a Tuesday note to clients, explaining Apple’s “AI ambitions are far more contained” than the other “magnificent seven” American tech leaders.

Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are the two largest companies in the world by market capitalization. While Nvidia is valued at roughly $3.38 trillion as of this writing and stands as the second-biggest business,

The AI tech DeepSeek used to train its reasoning model might be just what Apple needs for major Apple Intelligence developments on iPhone.

Nvidia stock shed 17% on Monday and erased $589 billion from its market cap, the worst single-day loss of market value ever amid panic over DeepSeek.

Eastern time, the S&P 500 was 0.3 per cent higher. The Dow Jones Industrial Average was up 0.3 per cent and the Nasdaq Composite was 0.8 per cent higher

Since the start of 2023, Nvidia 's (NASDAQ: NVDA) stock has gained an astronomical 906% as of the time of writing. It's also right around its all-time high right now, but these two facts may scare some investors off. The common thought is, "Nvidia has risen so much already; how can it increase more?"

In what marks the largest single-day drop in stock market history, Nvidia's valuation has been hit by China's answer to ChatGPT.

Nvidia is once again the most valuable U.S. company, outranking Apple for the first time since late November. The chip maker ended Tuesday with a market capitalization of $3.449 trillion, according to Dow Jones Market Data.

DeepSeek AI, favored by investors over ChatGPT, uses rapid advancements with cheaper chips as U.S. tech restrictions fuel China’s AI innovation.

President Donald Trump has threatened to introduce tariffs on Taiwan-made chips, which could hit Nvidia, one of TSMC's biggest customers.

Rebounding tech stocks drove U.S. indexes higher a day after they tumbled on doubts about the artificial intelligence frenzy.