Key Takeaways Nvidia shares tumbled Wednesday, dashing hopes for a quick recovery from losses earlier in the week amid concerns about competitiveness of American AI firms and their spending on artificial intelligence.

Nvidia drops 6% as the Trump administration considers new restrictions on AI chip sales to China, raising concerns over U.S.-China tech tensions.

Nvidia stock declined on Wednesday, even as strong earnings from ASML Holding lifted shares of other chip makers. Shares of Nvidia made a strong 9% comeback Tuesday after a 17% drop on Monday. However,

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 staged a moderate rebound on Tuesday, rising as much as 3%, following a 17% drop the prior day. More broadly, major US indexes rallied after S&P 500 and Nasdaq 100 saw sharp losses on Monday amid concerns over the Chinese AI firm DeepSeek rapid and cost-effective advances.

Other technology stocks trading at relatively low valuations to historical levels include Micron, Super Micro and Workday.

Nvidia stock jumped in Europe on Wednesday, suggesting shares in the company at the heart of the artificial intelligence markets boom may recover further after a steep drop this week triggered by the rise of China's DeepSeek AI tool.