Shares of Nvidia ( NVDA 6.97%) surged higher on Tuesday, after taking it on the chin Monday. The maker of graphics processing units (GPUs) used for artificial intelligence (AI) applications gained as much as 7.2%. As of 1:30 p.m. ET, the stock was still up 7.1%.

Shares of Nvidia (NVDA) tumbled Monday after the release of a sophisticated artificial intelligence model from a Chinese startup prompted a reckoning on Wall Street regarding AI spending. Chinese company DeepSeek last week released R1,

What Happened? Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) fell 13% in the morning session as stocks heavily tied to the AI market took a hit after Chinese artificial intelligence startup DeepSeek released a new large language model (DeepSeek-R1) that ranks competitively on key global benchmarks (coding competitions,

Investors spent much of 2024 looking for less crowded trades set to gain from the AI boom. This week, many of those names got caught in the historic sell-off.

The company that lifted the tech industry and drove A.I. spending for the last several years, suffering the biggest one day wipeout of wealth in U.S. Monday.

Other technology stocks trading at relatively low valuations to historical levels include Micron, Super Micro and Workday.