Rebounding tech stocks drove U.S. indexes higher Tuesday, a day after they tumbled on doubts about whether the artificial-intelligence frenzy really needs all the dollars being poured into it. The S&P 500 climbed 0.

After plunging 17% on Monday, Nvidia looks set to recover on Tuesday, with its stock up 5% in premarket trade.

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

Shares of Nvidia ( NVDA 6.97%) surged higher on Tuesday, after taking it on the chin Monday. The maker of graphics processing units (GPUs) used for artificial intelligence (AI) applications gained as much as 7.2%. As of 1:30 p.m. ET, the stock was still up 7.1%.

Since the start of 2023, Nvidia 's (NASDAQ: NVDA) stock has gained an astronomical 906% as of the time of writing. It's also right around its all-time high right now, but these two facts may scare some investors off. The common thought is, "Nvidia has risen so much already; how can it increase more?"

Shares of Nvidia (NVDA) tumbled Monday after the release of a sophisticated artificial intelligence model from a Chinese startup prompted a reckoning on Wall Street regarding AI spending. Chinese company DeepSeek last week released R1,