Nvidia stock looked set to pare some of its losses Tuesday.The chip maker was partly recovering from its historic fall the previous day as the market digested a Chinese startup’s claims of developing a leading artificial-intelligence model at an unprecedentedly low cost.

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.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.