Nvidia shares' 9% recovery Tuesday was the second-best day in terms of market cap added for any company ever, trailing only a record it set in July.

Nvidia Corp., the poster child of the AI frenzy, sank 17 per cent and headed toward the biggest market-cap loss for a single stock in market history. The AI leader wiped of $500 billion of its market value and shed 21 per cent off its stock price in two days.

Nvidia shares rebounded slightly on Tuesday as some traders stepped in to buy one day after the emergence of a cheaper, open-source artificial intelligence model from China caused the biggest market value loss in stock market history.