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.

Nvidia stock has had a wild week so far, and now the market seems unsure of what’s next for the world’s leading chip maker.Shares made a strong 9% comeback Tuesday after a 17% drop on Monday. The stock was trading down 0.

While companies like DeepSeek may find success in certain market segments, they face an uphill battle against this massive capital advantage. In other words, claims that demand for Nvidia's premium chips will collapse simply don't align with market realities and the trajectory of AI development.