Investors freaked out as China-based DeepSeek's AI chatbot became a threat to Nvidia, but some strategists say this will be a net positive for stocks.

DeepSeek’s ChatGPT competitor quickly soared to the top of the App Store, and the company is disrupting financial markets, with shares of Nvidia dipping 17 percent to cut nearly $600 billion from its market cap on January 27th, which CNBC said is the biggest single-day drop in US history.

A frenzy over an artificial intelligence chatbot made by Chinese tech startup DeepSeek was upending stock markets Monday and fueling debates over the economic and geopolitical competition between the U.