Nvidia Suffers Record $600 Billion Loss as Chinese AI Rival Stuns Markets
Chipmaker Nvidia drops nearly $600 billion in market value, marking the largest single-day loss in U.S. history, as a breakthrough by Chinese AI startup DeepSeek sparks a global tech selloff.
Shares of Nvidia plunge nearly 18 percent on Monday, resulting in a historic $600 billion loss in market value that stands as the largest single-day drop in United States stock market history. This massive sell-off pushes Nvidia's total valuation below the $3 trillion mark and allows Apple to reclaim its position as the world's most valuable company.
The sudden market panic emerges after DeepSeek, a Chinese artificial intelligence startup, releases a highly advanced large language model that takes Silicon Valley by storm and tops the Apple app store charts. Investors worry that this breakthrough threatens America's dominance in the AI sector, especially since DeepSeek achieves its results using widely available models and export-compliant computing power.
Despite the staggering daily loss, Nvidia remains fundamentally strong with shares still up over 480 percent from two years ago. The chipmaker strikes an optimistic tone, arguing that the surge in AI inference requires significant numbers of its high-performance graphics processing units, meaning DeepSeek's popularity ultimately drives more demand for Nvidia products.