Rebounding tech stocks drove U.S. indexes higher a day after they tumbled on doubts about the artificial intelligence frenzy.

Nvidia dipped 0.8% after initially gaining, following a nearly 17% plunge on Monday—its worst drop since the 2020 COVID crash.

SoftBank is in talks to lead a funding round for artificial intelligence robotics start-up Skild AI that would more than double its valuation to close to $4bn, as Masayoshi Son hunts for deals to match his vaunted ambitions for the sector.

The past few years have been undeniably profitable for Nvidia ( NVDA 4.43%) investors. The stock price has surged more than sevenfold over the past two years, and today, it topped the charts as the world's most valuable company in terms of market cap. The stock was up as much as 4.7% Wednesday morning. At 12:32 p.m. ET, the stock was still up 4.1%.

Nvidia (NASDAQ:NVDA) and other chip stocks are gaining in premarket trading Tuesday, poised to recover some of the losses from Monday’s sharp sell-off.

US chipmaker Nvidia dived 17 per cent, wiping off nearly USD 593 billion in the biggest market capitalisation loss in history, following a wave of selling as China's DeepSeek developed a free AI assistant using lower-cost chips.

Chinese startup DeepSeek's recently launched free AI assistant had overtaken US rival ChatGPT in downloads from Apple's app store

US stock market: Following concern over Chinese Air Intelligence (AI) start-up DeepSeek, NVIDIA share price witnessed sharp selling on Monday. The US stock market's tech major, NVIDIA stock price, opened lower at $124.80 apiece on the NASDAQ and touched an intraday low of $116.70 per share.

A major tech stock sell-off ensued Monday as the debut of DeepSeek rattled investors. Nvidia, Alphabet, and Microsoft were among the biggest losers.

Shock to financial markets came from Chinese firm whose AI app it says was made at a fraction of US AI models.

Wall Street's tech giants dragged US frontline indices on Monday after China's AI startup DeepSeek rattled Silicon Valley and hit the top of Apple’s App Store chart

As US companies prepare for this earnings season, analysts say they should expect to be asked about AI spending following DeepSeek's launch.