Nvidia shares' 9% recovery Tuesday was the second-best day in terms of market cap added for any company ever, trailing only a record it set in July.

By Medha Singh, Amanda Cooper and Harry Robertson LONDON/MILAN (Reuters) - Chip stocks in the U.S. and Europe rose on Wednesday for a second straight day, recovering from a punishing selloff triggered by China's low-cost DeepSeek artificial intelligence tool at the start of the week.

NVIDIA Corporation NVDA has once again proven its resilience, rebounding 8.9% on Tuesday after a brutal 17% plunge on Monday. The sell-off was triggered by concerns that Chinese AI startup DeepSeek’s latest artificial intelligence (AI) model could reduce demand for NVIDIA’s high-powered graphics processing units (GPUs).

NVIDIA, the world's most valuable company until Monday, lost $600 billion of market value in a single day, the biggest in US stock history.

Chinese startup DeepSeek has achieved what many (including experts) thought impossible: create a foundational, competitive AI model for just $5.6 million. By comparison, OpenAI’s unreleased GPT-5 (codenamed “Orion”) reportedly requires $500 million for six months of training.

Nvidia on Monday said Chinese AI firm DeepSeek's advances show the usefulness of its chips for the Chinese market and that more of its chips will be needed in the future to meet demand for DeepSeek's services.