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

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

When a stock price moves, so does the value of the company. In the case of Nvidia, the company's cratering share price has resulted in as much as $600 billion of lost market capitalization. On the surface, this looks horrific. However, as it often is the case with investments driven by overwhelming emotions, there's more than meets the eye.

Nvidia stock dropped 17% on Monday, Jan. 27 in an unprecedented bloodbath in the AI sector. In fact, it was the worst single-day dollar-value loss for a single stock in history, as Nvidia gave up roughly $600 billion in market cap.