Related: Palantir's stock price may surge for surprising reason AI chipmaker Sasquatch Nvidia (NVDA) got pummeled, with shares dropping 17% after DeepSeek debuted, wiping out $600 billion of the company's value.

Shares of the artificial intelligence (AI) chip leader have been crushed this year, but recent developments suggest the best is yet to come.

Alphabet is increasing its capital expenditures on AI investments.

Alphabet's big spending plans surprised Wall Street. The news should soothe investors worried about last week's DeepSeek shakeup disrupting the AI narrative.

Nvidia Corp.’s stock fell Monday as investors weighed the potential for tariffs to impact chip companies and continued to assess the fallout from DeepSeek. Shares of Nvidia slid 2.8% to rank among the worst performers in the PHLX Semiconductor Index The stock pared losses after President Donald Trump said he had agreed to pause the Mexico tariffs for a month.

Nvidia was one of several technology stocks hit by the emergence of Chinese AI competitor DeepSeek. An analyst sees the pullback as a buying opportunity. The NVDA Analyst: Morgan Stanley analyst Joseph Moore maintains an Overweight rating on Nvidia with a $152 price target.

Nvidia (NASDAQ:NVDA) stock received quite a shock last week when the Chinese tech company DeepSeek announced that it had successfully developed