Shares of semiconductor makers were dropping early Monday as a Chinese AI model triggered questions over their lofty valuations.

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.

DeepSeek topped the Apple App Store chart and sparked fears the Chinese company was quickly catching up with OpenAI's ChatGPT while costing far less.

The market reaction proved particularly severe for Nvidia (NASDAQ: NVDA), with shares plummeting and erasing half a trillion in market cap at the time of this writing. To put this staggering figure in perspective,

Shares of semiconductor makers were dropping early Monday as a Chinese AI model triggered questions over their lofty valuations.

Nvidia stock jumped in Europe on Wednesday, suggesting shares in the company at the heart of the artificial intelligence markets boom may recover further after a steep drop this week triggered by the rise of China's DeepSeek AI tool.

U.S. stocks recovered some ground on Tuesday after getting hammered by fears over China's DeepSeek AI model built on a shoestring budget.

Nvidia staged a moderate rebound on Tuesday, rising as much as 3%, following a 17% drop the prior day. More broadly, major US indexes rallied after the S&P 500 and Nasdaq 100 saw sharp losses on Monday amid concerns over the Chinese AI firm DeepSeek's rapid and seemingly cost-effective advances.

By Ankur Banerjee, Rae Wee and Amanda Cooper LONDON/SINGAPORE (Reuters) -Technology 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.