Nvidia closed higher on Tuesday as some investors seized an opportunity to buy the chip giant at a discount following its record wipeout on Monday.

Technology stocks fell sharply in Asia after the emergence of Chinese artificial-intelligence startup DeepSeek triggered a selloff in AI-related stocks overnight and cast uncertainty over the rising demand for data centers.

Technology stocks regained ground on Tuesday, a day after a low-cost Chinese AI model rattled markets, while traders rotated back into the dollar from safe-haven currencies.

The success of a mysterious Chinese lab has investors questioning the AI spending boom that has swept through Silicon Valley.

Technology stocks plunged Monday after China’s DeepSeek announced it had trained a sophisticated AI model at a fraction of the cost of Silicon Valley firms, sparking a sharp reversal in the AI rally.

Technology shares steadied, led by a modest recovery in Nvidia after its record-breaking wipeout in market value.

The Chinese company DeepSeek caused a major stir on the stock exchange. Investors reacted nervously to information that the Chinese startup had developed a competitive artificial intelligence model for a fraction of the billions spent by Silicon Valley.