Marvell Technology Inc. (MRVL) saw its stock price surge over 5% in pre-market trading on Tuesday, rebounding from the previous session's steep sell-off. The rebound comes after Nvidia Corporation (NVDA), a major player in the artificial intelligence (AI) chip market, downplayed concerns over China's new low-cost AI model DeepSeek, which had rattled markets on Monday.

On Monday, Marvell and other chip stocks plummeted amid fears that DeepSeek, a Chinese startup, had developed an AI model that could match the capabilities of industry leaders like OpenAI at a fraction of the cost. This raised concerns about the need for expensive, high-end chips from companies like Nvidia and Marvell, leading to a widespread sell-off in the tech sector.

However, Nvidia responded by stating that DeepSeek's work "illustrates how new models can be created using widely available models and compute that is fully export control compliant." The company added that while DeepSeek's approach is impressive, "inference requires significant numbers of NVIDIA GPUs and high-performance networking," suggesting that demand for its chips will remain strong.

Marvell, a provider of semiconductor solutions for data centers and network edges, was among the companies hit hardest on Monday, losing 19% of its market value. However, the stock rebounded strongly in pre-market trading on Tuesday, buoyed by Nvidia's reassurance and a broader recovery in the chip sector.