Nvidia stock looked set to pare some of its losses Tuesday.The chip maker was partly recovering from its historic fall the previous day as the market digested a Chinese startup’s claims of developing a leading artificial-intelligence model at an unprecedentedly low cost.

Nvidia stock rose early Tuesday as the AI chipmaker began to recover from a massive decline the prior day that shaved nearly $600 billion off its market cap.

Nvidia was last higher by about 7% on Tuesday, with the rally gaining steam throughout the session. The stock at one point shortly after the open was in the red. That bounce comes