In recent days, NVIDIA has experienced notable volatility in the market, generating uncertainty among investors. Below, we will analyze the data for Friday, January 24 and Monday, January 27, 2025, highlighting the percentages of change between the two days.
Monday has been quite hectic throughout the tech sector. Mr. Market has not liked at all that a new company from China of open source,DeepSeek Artificial Intelligence Co., Ltd., is offering much higher performance than other AI tools with a considerable reduction in costs due to its high optimization.
The emergence of DeepSeek has been a turning point that has shaken up the entire tech sector. This company in just 2 months has achieved impressive results with an investment of less than 10 million dollars. This artificial intelligence has been developed by the Chinese with Nvidia’s H200 cards but modified for the Chinese market, with a lower performance. They have used the ChatGpt base and with these cards they have created an artificial intelligence model 2 times faster and 90% less expensive.
DeepSeek LLM, an advanced language model comprising 67 billion parameters. It has been trained from scratch on a vast dataset of 2 trillion tokens in both English and Chinese. In order to foster research, they have made DeepSeek LLM 7B/67B Base and DeepSeek LLM 7B/67B Chat open source for the research community.
As a result, the main victim has been Nvidia, since it is no longer necessary to use huge quantities of the cards created by this company for the development of artificial intelligence, but with good optimization faster and cheaper results can be achieved.
Closing Price Analysis
NVIDIA‘s closing price on Friday, January 24th was 142.62 USD, while on Monday 27th it fell to 118.42 USD, representing a decrease of 24.20 USD, or -16.97%. This drop reflects a significant loss in the value of the stock in a short period of time.
Percent change: -16.97%
This sharp correction is closely linked to the emergence of a new artificial intelligence tool coming from China, DeepSeek which has led to a decline in investor confidence.
Absolute and Percentage Changes
The absolute change in the share price was also greatly expanded. On Friday there had already been a correction from the previous day, the change was -4.60 USD, while on Monday the decline was much larger at -24.20 USD. In percentage terms, on Friday it was –3.13%, while on Monday, the fall was -16.97%.
This indicates that selling pressure was significantly higher on Monday, driving a further decline in the stock price.
Trading Volume: A Shocking Increase
Trading volume on Monday was much higher, with 799 million shares traded, compared to 232 million shares on Friday. This represents an increase in volume of +243.10%.
Percent Change in Volume: +243.10%
The increase in volume is a key indicator that investors reacted more strongly on Monday, which may have been triggered by external factors or specific news about the company.
Daily Highs and Lows
The daily highs and lows also changed considerably between the two days:
- The daily high dropped from $148.97 on Friday to $128.40 on Monday, which is a decrease of -13.82%. Percent Change in Daily High: -13.82%
- The daily low declined from $141.88 on Friday to $116.70 on Monday, representing a drop of -17.74%. Percent change in daily low: -17.74%
This behavior indicates greater volatility in price during Monday, with a much more marked difference between the highs and lows of the day.
NVIDIA Statement on DeepSeek
The affected company itself has issued the following statement:
“DeepSeek is an excellent AI breakthrough and a perfect example of Test Time Scaling. DeepSeek’s work illustrates how new models can be created using this technique, taking advantage of widely available models and fully compliant computation with export controls. Inference requires a significant number of Nvidia GPUs and high-performance networking. We now have three scaling laws: pre-training and post-training, which continue, and the new scaling at test time.”
Conclusion: What do these changes mean for investors?
The sharp decline in the closing price, combined with the increase in trading volume and sharp declines in daily highs and lows, suggests that NVIDIA is going through a time of high volatility. Investors should consider these factors when making decisions, as the current market behavior may indicate a temporary correction or the start of a longer downtrend.
Total Percent Change in Closing Price: -16.97%
Total Percent Change in Volume: +243.10%
Given that NVIDIA has been a benchmark in the technology sector, this volatility can represent both an opportunity and a risk for investors. It is important to follow the next few days closely to understand whether these movements are a sign of a future recovery or greater uncertainty.