Nvidia shares tumbled as much as 18% Monday, the biggest drop since March 2020. In early afternoon trading in New York, the decline erased $560 billion from the company’s market capitalization.
That eclipsed the previous record — a 9% drop in September that wiped out about $279 billion in value — and was the biggest in US stock-market history.
Nvidia’s plunge was fueled by investor concern about Chinese artificial-intelligence startup DeepSeek.
The drop rippled through the rest of the market due to how much weight Nvidia has in major indexes.
The semiconductor maker is leading a broader selloff in technology stocks after DeepSeek’s low-cost approach reignited concerns that big US companies have poured too much money into developing artificial intelligence, since the Chinese firm appears to provide a comparable performance to Western chatbots at a fraction of the price.
The latest AI model of DeepSeek, released last week, is widely seen as competitive with those of OpenAI and Meta Platforms Inc.
The open-sourced product was founded by quant-fund chief Liang Wenfeng and is now at the top of Apple Inc’s App Store rankings.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
