Nvidia shares' 9% recovery Tuesday was the second-best day in terms of market cap added for any company ever—but the company faced another selloff Wednesday.

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.

By Ankur Banerjee, Rae Wee and Amanda Cooper LONDON/SINGAPORE (Reuters) -Global technology shares sank on Tuesday, as a market routsparked by the emergence of a low-cost Chinese artificial intelligence model entered its second day,

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.

Broadcom’s business relies heavily on their networking products, which are crucial for data transfer in AI systems. If the market for premium AI chips experiences a downturn, amid the rise of DeepSeek, it could create a domino effect, potentially hurting sales of Broadcom’s supporting technologies and components.

OpenAI—which faces multiple lawsuits for using content without permission—accuses DeepSeek of 'distillation,' a technique that use larger models' outputs to improve smaller ones.

OpenAI has accused Chinese AI start-up DeepSeek of using its proprietary models to train an open-source competitor.

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

Fox News correspondent Christina Coleman reports on the impact of DeepSeek AI on U.S. tech stocks and reactions to the innovation on ‘Fox News @ Night.’

Chinese AI startup DeepSeek has captured the tech world's attention in a way we haven't seen since ChatGPT and now, Donald Trump's got something to say about it, too. "The release of DeepSeek, AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing to win,