Technology stocks regained ground on Tuesday, a day after a low-cost Chinese AI model rattled markets, while traders rotated back into the dollar from safe-haven currencies. The tech rebound boosted Wall Street's main stock indices,

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

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

Technology stocks led gains in Asia-Pacific markets on Wednesday, tracking advances on Wall Street overnight as investor angst ebbed over the emergence of a low-cost Chinese AI model that some see rivalling U.

Monday’s 3% slide in the Nasdaq 100 Index came as a rude shock to tech bulls. For equity investors who’ve been made uncomfortable by tech’s wild outperformance over the past two years, though, there were some encouraging signs.

DeepSeek released an open-source artificial intelligence model in December, saying it took only two months and less than $6 million to create it.

Technology stocks fell sharply in Asia after the emergence of Chinese artificial-intelligence startup DeepSeek triggered a selloff in AI-related stocks overnight and cast uncertainty over the rising demand for data centers.

Technology stocks regained some ground on Tuesday with chipmaker Nvidia up about 2.5% in early trading, a day after it suffered the biggest one-day market capitalization loss in history, and traders moved back out of safe-haven currencies into the dollar.

US tech stocks were steady on Tuesday after they slumped on Monday following the sudden rise of Chinese-made artificial intelligence (AI) app DeepSeek. Shares in chip giant Nvidia rose by 8.8%, having slumped on Monday,

U.S. tech stocks, including Nvidia, Oracle and Broadcom, plummeted Monday after Chinese startup DeepSeek said it created an AI system that can compete against chatbots such as OpenAI's ChatGPT at much lower costs.