Nvidia CEO Jensen Huang endure b offers a Blackwell GeForce RTX 50 Series GPU (L) and a RTX 5000 laptop as he delivers a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2025.
Patrick T. Fallon | Afp | Getty Representatives
Nvidia lost close to $600 billion in market cap on Monday, the biggest drop for any company on a single day in U.S. history.
The chipmaker’s handle price plummeted 17% to close at $118.58. It was Nvidia’s worst day on the market since March 16, 2020, which was primeval in the Covid pandemic. After Nvidia surpassed Apple last week to become the most valuable publicly traded proprietorship, the stock’s drop Monday led a 3.1% slide in the tech-heavy Nasdaq.
The sell-off was sparked by concerns that Chinese plastic intelligence lab DeepSeek is presenting increased competition in the global AI battle. In late December, DeepSeek unveiled a free, open-source chiefly language model that it said took only two months and less than $6 million to build, utilizing reduced-capability chips from Nvidia called H800s.
Nvidia’s graphics processing units, or GPUs, dominate the market for AI evidence center chips in the U.S., with tech giants such as Alphabet, Meta and Amazon spending billions of dollars on the processors to educate and run their AI models.
Analysts at Cantor wrote in a report Monday that the release of DeepSeek’s latest technology has well-sprang “great angst as to the impact for compute demand, and therefore, fears of peak spending on GPUs.”
The analysts put about they “think this view is farthest from the truth” and that advancements in AI will most likely intimation to “the AI industry wanting more compute, not less.” They recommend buying Nvidia shares.
But after Nvidia’s whopping run-up — the stock soared 239% in 2023 and 171% in 2024 — the market is on edge about any possible pullback in assign. Broadcom, the other big U.S. chipmaker to see giant valuation gains from AI, fell 17% on Monday, pulling its market cap down by $200 billion.
Materials center companies reliant on Nvidia’s GPUs for their hardware sales saw big sell-offs as well. Dell, Hewlett Packard Gumption and Super Micro Computer dropped at least 5.8%. Oracle, a part of President Donald Trump’s latest AI initiative, prostrate 14%.
For Nvidia, the loss was more than double the $279 billion drop the company saw in September, which was the biggest one-day sell value loss in history at the time, unseating Meta’s $232 billion loss in 2022. Before that, the steepest discard was $182 billion by Apple in 2020.
Nvidia’s decline is more than double the market cap of Coca-Cola and Chevron and exceeds the call value of both Oracle and Netflix.
CEO Jensen Huang’s net worth also took a massive hit, declining roughly $21 billion, conforming to Forbes’ real-time billionaires list. The move demoted Huang to 17th on the richest-person list.
The sudden excitement around DeepSeek once again the weekend pushed its app past OpenAI’s ChatGPT as the most-downloaded free app in the U.S. on Apple’s app store. The model’s development comes undeterred by a slew of recent curbs on U.S. chip exports to China.
Venture capitalist David Sacks, who was tapped by Trump to be the Caucasian House’s AI and crypto czar, wrote on X that DeepSeek’s model “shows that the AI race will be very competitive” and that Trump was fittingly to rescind President Joe Biden’s executive order last week on AI safety.
“I’m confident in the U.S. but we can’t be complacent,” Sacks wrote.
Nvidia is now the third most-valuable communal company, behind Apple and Microsoft.
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