Serve Robotics Inc. (SERV) saw its stock surge 6.28% in the pre-market trading session on Tuesday, as the robotics company rebounded from a broader sell-off in tech stocks on Monday sparked by concerns over the cost of competing with China's low-cost AI model.

The rebound in Serve Robotics' share price came after a steep plunge on Monday that saw tech giants like Nvidia Corp. (NVDA) suffer their biggest one-day losses ever. The sell-off was triggered by the release of China's DeepSeek R1 large language model, which raised fears that U.S. companies would face higher costs to develop competing AI models.

However, Wall Street firms have termed the sell-off as a "golden buying opportunity" for investors, with Serve Robotics among the stocks bouncing back on Tuesday. The robotics company's pre-market gains were part of a broader rebound in chip, nuclear energy, and robotics stocks, as investors scooped up shares at lower prices following the previous day's rout.