On Monday morning US stock markets and the Sillion Valley went into a tailspin after a less known Chinese company’s new AI model rattled the world with its unprecedented AI innovation. DeepSeek threatened the dominance of AI leaders like Nvidia, evaporating $593 billion of the chipmaker’s market value, a record one-day loss for any company on Wall Street.
Global investors dumped tech stocks on Monday leading the tech-heavy Nasdaq to fall 3.1%. Nvidia was the Nasdaq’s biggest drag, with its shares tumbling just under 17% and marking a record single-day loss in market capitalization for a Wall Street stock, according to LSEG data. Nvidia’s market-cap loss on Monday was more than double the previous one-day record, set by Nvidia last September.
1. Nvidia Leads the Losses, biggest wipe-out in history
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Nvidia, which had thrived on the AI boom, saw its valuation crater as investors reevaluated its dominance. Company’s market loss on Monday was more than double the previous one-day record, set by Nvidia last September. On the worst day since pandemic hit the company lost almost $600 billion in market value in the biggest wipe-out in history. The company CEO’s losses stretched to $20.1bn.
2. US stocks ended deep in red
The Nasdaq 100 ended the day with a 3% fall, erasing one year gains and losses upto $1 trillion in one single day. Energy firms expected to profit from unprecedented AI demand sank. The investor pull out indicates their concern over whether billions being spent on AI is worth the gains. “When valuations stretch to the sky it’s easier for small trembles to make the entire market rumble,” Max Gokhman, senior vice president at Franklin Templeton Investment Solutions told Bloomberg.
3. Tech Stocks lose trillions
The Nasdaq’s next-biggest drag was chipmaker Broadcom Inc , which finished down 17.4%, followed by ChatGPT backer Microsoft, which fell 2.1% and then Google parent Alphabet,
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