Investors were looking to Microsoft and Meta to provide reassurance that they will keep spending heavily on Nvidia chips.

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.

U.S. chip stocks were a mixed bunch with several joining Nvidia in the red. Cirrus Logic was down 2.2% while ARM Holdings' U.S. shares fell 2.1% and Broadcom lost 1.8%. On the other side of the fence Coherent Corp was up 3.6% and Advanced Micro Devices rose 2.6%. ASML's U.S. shares were last up 4.4%.

Chinese artificial intelligence startup DeepSeek rattled the U.S. technology sector after the company recently unveiled an AI model that is competitive with leading U.S. models b

DeepSeek's new model poses some serious questions about the assumptions behind AI investments. But what if that's a good thing for Big Tech?

With a model that offers comparable performance at seemingly a fraction of the cost, the DeepSeek chatbot is causing a reckoning over American dominance in the tech industry. The U.S. has imposed sanctions on advanced chip sales to slow down progress in AI elsewhere.