Nvidia stock price rally led a 2% rally on Nasdaq. The recovery in AI darling Nvidia shares came a day after the stock saw a sharp 17% drop, erasing about $593 billion from its market value in the biggest single-session loss for any company on Wall Street.

Nvidia is facing the biggest single-day market value loss in history, according to a report by Forbes, as the release of an open-source AI model called R1 by China-based DeepSeek has cut more than $600 billion from its valuation,

U.S. stocks rose on Tuesday, with artificial intelligence-linked and other technology shares bouncing back from sharp losses the previous day as investors snapped up bargains. The Nasdaq led gains. AI chip leader Nvidia added 6.

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.

After plunging 17% on Monday, Nvidia climbed almost 9% as investors rushed in to buy this historic dip in shares of the top chip maker.

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