Shares of Nvidia (NASDAQ: NVDA) are seeing another round of big sell-offs in Wednesday's trading. The stock was down 5.9% as of 1:26 p.m. ET today amid the backdrop of a 0.5% decline for the S&P 500 index and a 0.

Nvidia (NASDAQ: NVDA) stock saw a dramatic sell-off in Monday's trading following developments that have raised questions about the demand outlook for its advanced processors. The artificial intelligence (AI) leader's share price closed out the day's trading down 17.

NVIDIA Corporation NVDA has once again proven its resilience, rebounding 8.9% on Tuesday after a brutal 17% plunge on Monday. The sell-off was triggered by concerns that Chinese AI startup DeepSeek’s latest artificial intelligence (AI) model could reduce demand for NVIDIA’s high-powered graphics processing units (GPUs).

DeepSeek also uses a smaller model as opposed to that used by U.S. AI tech giants, which require more processors. Plus, they have made DeepSeek open source , which avoids the recurring fees that their U.S. competitors charge.

The sudden rise of Chinese AI app DeepSeek has leaders in Washington and Silicon Valley grappling with how to keep the U.S. ahead in the crucial technology.