Tech shares steady, Nvidia edges up after epic DeepSeek mauling
shares steadied on Tuesday, led by a modest recovery in Nvidia after its record-breaking wipeout in market value in a rout sparked by a low-cost Chinese artificial intelligence model that may threaten the dominance of U.S. rivals.
Shares in Nvidia, a leader in the AI chip market, fell 17% on Monday, wiping $593 billion from its market value — a record one-day loss for any company — and dragged U.S. stocks lower.
By Tuesday, Nvidia shares were up around 5% in premarket trading, while those in Oracle were up 3.4% and Marvell Technology rose 3.6%, while tech shares in Europe pared some of their earlier losses.
Monday's sell-off was prompted by the release of a free AI assistant launched by China's DeepSeek last week that the startup said uses less data at a fraction of the cost of services currently available. That garnered attention worldwide, although scepticism over DeepSeek's cost claims lingers.
OpenAI CEO Sam Altman called it an «impressive model», while U.S. President Donald Trump called it «a wakeup call for our industries.»
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