The recovery came after US chipmaker Nvidia closed up 9 per cent on Tuesday, recouping some of the heavy losses that wiped $600bn off its market capitalisation at the start of the week, when investors fretted over the threat from China’s DeepSeek to the US supremacy in artificial intelligence.

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.

DeepSeek's claims that it cost mere millions to build fanned fears that the huge investments into AI by U.S. firms are unwarranted and a bubble waiting to pop.

It all stemmed from a free AI assistant launched by Chinese startup DeepSeek last week that the firm sa id uses less data at a fraction of the cost of services available currently, garnering significant attention worldwide including from OpenAI CEO Sam Altman who called it an “impressive model”.

Nvidia faced a catastrophic 16.9% drop in its stock price today, its worst day on Wall Street since March 2020. The sell-off was caused by Chinese AI company DeepSeek, who shattered confidence in the competitiveness of US tech companies.

Nvidia's US$589 billion loss in stock market value is the deepest one-day loss for a company on Wall Street, according to LSEG data. It was more than double the previous one-day record loss, set by Nvidia last September. The tech-rich Nasdaq index finished down more than 3 per cent.

Asian markets show mixed performance as Wall Street’s tech stocks fall amid concerns over Chinese AI competitor DeepSeek.

Shares in Nvidia, whose semiconductors power the AI industry, fell nearly 17 percent on Wall Street, erasing nearly $600 billion of its market value.

Shares for leading US chip firm Nvidia dropped by almost 17% on Monday after the emergence of DeepSeek stunned Silicon Valley.

US chipmaker Nvidia led a rout in tech stocks after the emergence of a low-cost Chinese generative AI model that could threaten American dominance in the fast-growing industry. The chatbot developed by DeepSeek,

Major AI players, including Nvidia, Meta, Microsoft, and Alphabet, saw significant losses, with Nvidia shedding over 11% and losing $400 billion in market value. Analysts highlighted China’s growing challenge to US tech dominance.

Nvidia drops 12% as DeepSeek’s AI model challenges tech giants’ investments. Nasdaq 100 futures slide 3.5%; traders brace for Big Tech earnings.