Technology stocks rebounded Tuesday as semiconductor companies announced major business developments and Wall Street eased concerns about recent sector volatility.

Alphabet's Google division has contracted Intel to manufacture over 3 million custom chips, according to a report from The Information. The deal represents a significant win for Intel's foundry business as the company seeks to compete with Taiwan Semiconductor Manufacturing Company in contract chip production.

Marvell Technology shares surged approximately 10% after S&P Dow Jones Indices announced the company would join the S&P 500 index. The inclusion in the benchmark index typically drives increased investment from index funds and institutional investors, boosting demand for the stock.

Corning saw its shares jump 9% following news of a partnership with Amazon to supply optical fiber and connectivity solutions for the e-commerce giant's artificial intelligence data centers across the United States. The deal underscores the growing infrastructure demands of AI computing operations.

Nvidia announced an expanded partnership with Hyundai to develop AI-powered robotics applications, deepening the graphics chip maker's push into autonomous systems beyond its core data center business. However, the company faces questions about demand for AI-enabled personal computers beyond specialized users.

Despite the positive developments, private equity investment in technology companies has declined dramatically, with deal values falling 70% as investors express caution about AI-related investments. Wall Street strategists view the recent tech stock pullback as a healthy correction rather than a sign of broader market weakness.