U.S. chip stocks stumbled on Tuesday, but the broader market's initial slump brought out bargain-hunting investors, stemming the falloff in other companies central to the AI infrastructure rally that have powered the market over the last few years.
The tech-heavy Nasdaq Composite index was still down 1.4%, wiping out around $680 billion in market value in morning trading on Tuesday. Elon Musk's SpaceX briefly traded below $2 trillion in market cap for the first time since its debut earlier this month before rebounding into positive territory.
