How Nvidia Rebounded from the DeepSeek Sell-Off - A Lesson in Long-Term Investing

Here we are over a year later and Nvidia's stock has rebounded from the DeepSeek sell-off. In January 2025, Nvidia's stock took a hit when news surfaced that DeepSeek, a Chinese start-up, developed an AI model rivaling those in the U.S. The panic in the market led to a 17% drop in Nvidia's share price, plummeting from $142.62 to $118.42 on January 27, 2025.

However, those who took advantage of this buying opportunity were rewarded. Within a year, Nvidia's stock went on to hit a high of $212.19. On February 13, 2026, it opened at $187.475, which represents a gain of approximately 58% from the panic-induced low. This demonstrates that short-term market fluctuations don't always impact long-term investments, especially in companies with strong fundamentals. If you watched the fall of Nvidia stock on that day, you might have thought it was the beginning of the end for Nvidia. However, as a leading player in AI and technology, Nvidia represents an example of how temporary setbacks can mislead short-term investors.

The lesson here is to pay attention to long-term trends, like the rise of AI, and not get too caught up in short-term market fluctuations. During the turbulent times of the current admininistration's tariff turmoil, Nvidia dropped as low as $86.62 on April 7, 2025 only to reach a high of $212.19 a short 6 months later...a gain of over 145%! Those who sold during the tariff turmoil probably sold in a panic and regretted their decision shortly thereafter. All things considered, that was an unprecedented time in the market that was full of uncertainty and fear.

As always, do your own research and consult with a financial advisor before making any investment decisions. Nothing in this post should be taken as a recommendation to buy, sell, or hold Nvidia, but instead to use it as an example of how to approach investing as a long-term wealth generation machine. As of today, February 16, 2026, I personally own shares of Nvidia.