Investors were looking to Microsoft and Meta to provide reassurance that they will keep spending heavily on Nvidia chips.

Chip stocks in the U.S. and Europe rose on Wednesday for a second straight day, recovering from a punishing selloff triggered by China's low-cost DeepSeek artificial intelligence tool at the start of the week.

Importantly, several Wall Street analysts have updated or reiterated their forecasts since DeepSeek published its research paper last week, and they all see upside in Nvidia stock from its current price of $128 per share. Gil Luria at D.A. Davidson set his target price at $135 per share, implying a 5% upside.

DeepSeek and its seemingly lower-cost operations raised worries about whether companies would need to spend as many dollars on Nvidia chips as previously thought. The concerns dra