Nvidia closed higher on Tuesday as some investors seized an opportunity to buy the chip giant at a discount following its record wipeout on Monday.

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

In a matter of days, DeepSeek proved to be so popular as to climb to the top of Apple's App Store, surpassing OpenAI's ChatGPT as the most downloaded app. But for owners of Nvidia stock, and stock traders in general, DeepSeek is on track of becoming a black swan — an unexpected event with extreme consequences.

By Medha Singh, Amanda Cooper and Harry Robertson LONDON/MILAN (Reuters) - 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.