Nvidia shares' 9% recovery Tuesday was the second-best day in terms of market cap added for any company ever—but the company faced another selloff Wednesday.

Chip stocks in the U.S. and Europe rose on Wednesday for a second straight day, recovering from a punishing selloff triggered by China's low-cost DeepSeek artificial intelligence tool at the start of the week.

The U.S. tried to slow China’s advances, but the startup showed how hard that is.

DeepSeek’s emergence has raised concerns that China may have overtaken the US in the artificial intelligence race despite restrictions on its access to the most advanced chips.

And finally, in the year 2025, here comes DeepSeek to blow up the industry’s whole narrative about AI’s bottomless appetite for power, and potentially break the spell that had kept Wall Street funneling money to anyone with the words “harnessing artificial intelligence” in their pitch deck.

U.S. President Donald Trump said on Monday that Chinese startup DeepSeek's technology should act as spur for American companies and said it was good that companies in China have come up with a cheaper,