Investors piled back into Nvidia (NVDA) and other U.S. artificial intelligence stocks Tuesday, driving a rebound from Monday’s DeepSeek-driven sell-off.

The dramatic nature of Monday’s market reaction, however, had some on Wall Street tempering their expectations for how high some of those affected stocks would eventually rebound.

AI stocks had tumbled Monday after an app from Chinese AI startup DeepSeek overtook OpenAI's to top Apple's list of most-downloaded free U.S. apps. DeepSeek's claims that its AI models can rival the performance of American counterparts at a fraction of the cost raised concerns about the competitiveness of U.S. firms and their big spending on the emerging tech. 

Analysts at Bernstein, Citi, Wedbush, Raymond James and elsewhere were among those suggesting that Monday's market reaction could be overblown, offering an opportunity to buy the dip. Markets did, in fact, broadly rise today: Nvidia shares finished Tuesday up about 9%, though still ending far from Friday's close. Astera Labs shares gained close to 8% Tuesday, while Marvell rose 3.5% and Broadcom climbed nearly 3%. Micron shares ended about 3% lower after losing hold of earlier gains.

But there was also some wariness out there.

"Investors may want to consider trimming their tech exposure, given the still-lofty valuations and potential uncertainties ahead," said ProShares Global Investment Strategist Simeon Hyman.

Morgan Stanley analysts told clients in a note Tuesday that while they “remain positive” on AI semiconductor stocks broadly, “the stock market reaction is probably more important than the cause, and could bring further export controls or reduce spending enthusiasm.”

The analysts added that while they don't expect those worries to drive major changes in spending behavior for most companies in the AI space, investors could react to coming spending announcements with less support than they did last week, when Meta Platforms (META) unveiled plans to spend up to $65 billion to support its AI ambitions, and President Donald Trump announced a $500 billion project to build AI infrastructure in the U.S.

The analysts maintained “overweight” ratings for AI chipmakers Nvidia and Broadcom (AVGO), but lowered their price target on Nvidia to $152 from $166, and their target on Broadcom to $246 from $265. The analysts lowered targets for Astera Labs (ALAB), Marvell Technology (MRVL), and Micron Technology (MU) as well.