The significant loss of Nvidia, valued at half a trillion dollars, causes global chip stocks to fluctuate.

• On Tuesday, global semiconductor stocks experienced fluctuating trading following a decline in Nvidia's shares the day before.
• The shares of StMicroelectronics, a Switzerland-based semiconductor firm, decreased by 1.7%, while ASML, a Dutch chip equipment giant, experienced a decline of approximately 0.5%.
• In Asia, MediaTek's shares dropped by 1.8% and Samsung's shares declined by 0.3%.

On Tuesday, global semiconductor stocks experienced volatile trading following a decline in shares during the previous session.

Despite Nvidia losing over $500 billion in market capitalization over three trading days, the U.S. chipmaking giant's shares were around 3% higher in early trade Tuesday.

In Europe, ASML, the Dutch chip equipment giant, was down about 0.5% as of 10:45 a.m. ET Tuesday, off earlier lows. ASML is a key player in the global semiconductor market and makes and sells extreme ultraviolet lithography (EUV) machines, which chipmakers use to manufacture integrated circuits.

Meanwhile, Switzerland-based semiconductor firm ' shares were down 1.7%.

Meanwhile, Nvidia shares recovered as both the S&P 500 and the Nasdaq Composite rose 0.4%, reversing earlier losses. The pan-European stock market was 0.3% lower.

The shares of Asian semiconductor companies experienced fluctuations, with Taiwanese chip firms declining by 1.8% and South Korean firms sliding by 0.3%.

Despite the negative sentiment, Intel and SK Hynix experienced growth, with Intel rising 0.5% and SK Hynix increasing by 0.9%.

Nvidia shares rebound

Nvidia's shares have experienced a 13% decline over three consecutive sessions, following a sharp slide from their all-time highs on Thursday.

On Tuesday, Nvidia's shares started to rebound after closing down 6.7% on Monday, which was its second-steepest drop of the year.

Nvidia's market value dropped by over $540 billion by the end of Monday, making it the least valuable U.S. company last week.

Nvidia reports that demand for its AI graphics processing units (GPUs) remains high.

Microsoft, Amazon, Facebook, Apple, and others are purchasing billions of dollars' worth of chips from Intel to power their data centers and cloud services.

This year, Nvidia will begin shipping its new AI chips, Blackwell, which some analysts predict will trigger another wave of substantial growth for the company and its collaborators.

• CNBC's Kif Leswing contributed to this report