Short-term traders are proving eager to bet on a rapid recovery in Nvidia, pouring money into the three largest leveraged exchange-traded funds which are linked to gains in the share price of the AI chipmaking giant.

Single-stock ETFs betting heavily on Nvidia's blistering rally plunged overnight after tracking losses logged by the chip darling.

Global investors dumped tech stocks on Monday, worried that the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of leaders like Nvidia, evaporating $593 billion of the chipmaker's market value.

Nvidia shares' 9% recovery Tuesday was the second-best day in terms of market cap added for any company ever, trailing only a record it set in July.

The market reaction proved particularly severe for Nvidia (NASDAQ: NVDA), with shares plummeting and erasing half a trillion in market cap at the time of this writing. To put this staggering figure in perspective,

After plunging 17% on Monday, Nvidia climbed almost 9% as investors rushed in to buy this historic dip in shares of the top chip maker.