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.

Monday’s DeepSeek sell-off may have rattled investors who picked up shares of a top semiconductor play at any time over the past few weeks. Undoubtedly, it’s not hard to imagine many new retail investors panicking in the face of Nvidia (NASDAQ:NVDA) stock’s sudden double-digit percentage decline.

US President Donald Trump has called Chinese AI start-up DeepSeek's strong showing a "wake-up call" and "positive" for America's tech sector, and also warned that he would slap tariffs on foreign-made semiconductor chips,

The little-known artificial intelligence firm has emphasized research, even as it emerged as the brainchild of a hedge fund.

The tech-heavy Nasdaq composite closed down nearly 3% on Monday, with shares of AI-focused chipmaker Nvidia plunging 17% and shaving nearly $590 billion from the company’s market cap.

DeepSeek, a Hangzhou-based startup founded in 2023, shot to the top of Apple’s App Store free app chart after releasing a new open-source AI model it says rivals OpenAI's work. Its website was hit by outages amid a spike in interest.

In case there’s any question, under no circumstances is Nvidia about to lose its market dominance due to a Chinese software app. In fact, the U.S. stock market’s deep dive on Monday because of DeepSeek gives you a chance to load up on Nvidia and power-grid stocks.

Technology stocks were rocked to their core Monday after claims made by a Chinese start-up threatened to upend the existing artificial intelligence (AI) paradigm. The post Should you buy Nvidia shares in the wake of the DeepSeek bombshell?

Nvidia stock tumbled after DeepSeek's AI news surfaced in tech circles. Read more about the impact the DeepSeek developments may have NVDA stock now.