NEW YORK (Reuters) - Monday's massive selloff in AI-darling Nvidia's ( NVDA ) shares did little to blunt options traders' enthusiasm for the chipmaker's shares, with traders quick to pile back into bullish Nvidia ( NVDA ) contracts as the stock recovered on Tuesday.

Nvidia ( NVDA ) shares slumped about 17% or close to $593 billion in market value - a record one-day loss for any company - on Monday on worries sparked by a low-cost Chinese artificial intelligence model that threatens the dominance of U.S. rivals. The stock was up about 7% on Tuesday.

The selloff jolted investors long used to the stock climbing ever higher, but options traders were already seizing the opportunity to position for a rebound.

"It's certainly been a speed bump for many but it hasn't halted the activity," said Steve Sosnick, chief strategist at Interactive Brokers."

On Tuesday, call options, typically bought to express a bullish view on a stock, outnumbered put options 1.6-to-1, nearly in line with the 1-year average, after dipping to a more than two-month low of 1.36-to-1 on Monday.

"We've seen tremendous dip-buying," Sosnick said.

Some 5.4 million Nvidia ( NVDA ) options contracts changed hands by 1:30 p.m. (1830 GMT), at nearly twice the usual pace, according to Trade Alert data.

Options traders had gotten extremely bullish on Nvidia ( NVDA ) and AI technology in general in the days leading up to the selloff with sentiment being helped along by last week's announcement by President Donald Trump of a massive private-sector investment to build more AI data centers.

"There was just a lot of positional excess that created a lot of the volatility," said Brent Kochuba, founder of options insights company SpotGamma.

With that out of the way Nvidia ( NVDA ) options trading was a lot more two-way balanced trading Kochuba said.