US-listed shares of tech giants Nvidia, TSMC, and others are gaining some lost ground after China's DeepSeek rattled stock markets.

U.S. stocks recovered some ground Tuesday morning after getting hammered by fears over China's DeepSeek AI model built on a shoestring budget.

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

KEY TAKEAWAYS A slew of stocks, including chip maker Nvidia, tumbled Monday after Chinese startup DeepSeek released an AI model that runs on less-advanced chips and at a lower cost than those of U.S.

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