This argument seems fallacious: the stock was "hit" before security issues emerged. It's hard to say how this recent news will affect the stock, directly and indirectly through eventual damage that follows. Imagine that the security issues were 1000 times worse: you could still write the same comment, but the reputation of DeepSeek and by extension all Chinese AI and software would be so badly hurt that long term any Chinese success would be downplayed, having lesser effect on stock market. If Nvidia stock would recover or not is more nuanced, because market is speculative, and if a bubble is burst, even if what pierced it turns out to be fake/irrelevant, the bubble is no longer there (a new one may need a lot of time and effort to grow).