After DeepSeek shock, U.S. tech stocks recover some losses – National [Video]

Technology shares on Tuesday regained some ground lost and AI chip leader Nvidia rose more than 6 per cent after the previous day’s record-breaking wipeout sparked by a low-cost Chinese artificial intelligence model that threatens the dominance of U.S. rivals.

On Monday, Nvidia lost about 17 per cent or close to US$593 billion in market value – a record one-day loss for any company, while shares of companies in semiconductor, power and infrastructure companies exposed to AI collectively shed more than US$1 trillion.

Monday’s selloff 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 incumbent services. That garnered attention worldwide, although skepticism lingers over DeepSeek’s cost claims.

While the broader technology sector was up 2.7 per cent on Tuesday, the Philadelphia semiconductor index was down 0.2 per cent after falling 9.2 …