Nvidia, in contrast, has nearly everything AI investors want. It's profitable, it has plenty of room to grow as AI investments expand, and its shares are relatively well priced with a forward price-to-earnings ratio of 34, compared to the tech-heavy Nasdaq-100 's 26.4. For all of those reasons, Nvidia looks like the far better AI stock right now.

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.

KEY TAKEAWAYS Nvidia and other artificial intelligence stocks at the forefront of the AI revolution are rebounding somewhat Tuesday after a selloff triggered by Chinese startup DeepSeek’s launch of a cutting-edge model at a fraction of the cost of its U.