Nvidia said in a statement it is "ready to work with the administration as it pursues its own approach to AI."

Donald Trump's administration is considering stricter limits on Nvidia's H20 chip sales to China, due to DeepSeek AI and growing concerns over the Asian giant's AI tech advancements. The H20 chips, compliant with US restrictions,

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

Shares for leading US chip firm Nvidia dropped by almost 17% on Monday after the emergence of DeepSeek stunned Silicon Valley.

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