Monday's DeepSeek sell-off may have rattled investors who picked up shares of a top semiconductor play at any time over the past few weeks. Undoubtedly, it's not hard to imagine many new retail investors panicking in the face of Nvidia (NASDAQ:NVDA) stock's sudden double-digit percentage decline.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.

Nvidia on Monday said Chinese AI firm DeepSeek's advances show the usefulness of its chips for the Chinese market and that more of its chips will be needed in the future to meet demand for DeepSeek's services.