The US technology sector is recovering from a record collapse

The American technology sector has partially recovered after a sharp decline. Shares of Nvidia, the leader in the production of AI chips, rose by 6% after the collapse caused by the appearance of the Chinese DeepSeek model, which threatens American dominance. 

Nvidia lost about 17% of its market value, or $600 billion, on Monday, marking a record one-day loss. The combined losses of semiconductor, energy, and infrastructure companies related to AI have exceeded $1 trillion.

Although the technology sector rose 2.7% on Tuesday, the Philadelphia Semiconductor Index (.SOX) declined 0.2% after falling 9.2% a day earlier, marking the largest decline since March 2020. Analysts call this recovery expected, noting that the stock sell-off on Monday took place without taking into account the individual risks of the companies. They also emphasize that the competition caused by DeepSeek does not exclude the need for advanced chips.

Nvidia shares rose above $126 on Tuesday, remaining below Friday's level of $142.62. Oracle gained 3.3%, offsetting part of Monday's drop of 13.8%. Marvell Technology shares rose 2.7% after a previous decline of 19%.