Nvidia (NASDAQ: NVDA) made stock market history on Monday, Jan. 27, but not the good kind. The chipmaker saw its share price decline 17%, due to concerns about an artificial intelligence (AI) model from Chinese start-up DeepSeek.

The rise of China’s DeepSeek and its groundbreaking AI advancements has shaken global markets, especially the tech sector. The reaction has been swift and intense — the Nasdaq-100 ($IUXX) fell 3.1% and the S&P 500 Index ($SPX) dropped 1.

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

Broadcom’s business relies heavily on their networking products, which are crucial for data transfer in AI systems. If the market for premium AI chips experiences a downturn, amid the rise of DeepSeek, it could create a domino effect, potentially hurting sales of Broadcom’s supporting technologies and components.

OpenAI—which faces multiple lawsuits for using content without permission—accuses DeepSeek of 'distillation,' a technique that use larger models' outputs to improve smaller ones.

OpenAI has accused Chinese AI start-up DeepSeek of using its proprietary models to train an open-source competitor.

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.

Technology stocks led gains in Asia-Pacific markets on Wednesday, tracking advances on Wall Street as investor angst ebbed over the emergence of a low-cost Chinese AI model that some see rivalling U.S.

Wall Street is looking to claw back some of yesterday's steep tech-lead declines with megacap earnings and a Fed meeting in focus.