Nvidia (NVDA) stock extended its rally into a third day, rising more than 1% on Tuesday. The AI chipmaker’s shares have now regained about 90% of the ground they lost in panic-selling last month triggered by Chinese startup DeepSeek.

Nvidia has big year ahead, but the selloff might set a better stage for its chip product transition.

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.