Nvidia rose on Tuesday, clawing back some losses one day after the emergence of a cheaper, open-source artificial intelligence model from China caused the shares to post the biggest market value loss in stock market history.

Nvidia climbed 8.8%, with the rally gaining steam throughout the day and closing near session highs. The stock at one point shortly after the open was in the red.

That bounce comes after stock plunged 17% on Monday and slashed more than $595 billion from the company’s valuation, the biggest single-day market cap decline on record. But retail investors bought the dip at a record level, even as the sell-off gripped Wall Street, according to Vanda Research.

Monday’s steep sell-off — which sent shock waves across the broader tech industry, with the Nasdaq Composite dropping 3% —  came as traders grew fearful that an AI stock bubble could burst due to the Chinese startup DeepSeek.

Source: CNBC