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Nvidia's stock plummeted, experiencing a historic single-day loss of nearly $600 billion in market capitalization. This dramatic downturn was primarily fueled by investor concerns surrounding the rise of DeepSeek, a Chinese AI startup. The drop, which saw Nvidia shares fall by 16.86% to close at $118.58, marks the largest one-day market cap loss in US history, more than doubling any previous single day drop for an American company. Anxiety over DeepSeek's advancements has also triggered a sell-off in other US tech stocks pre-market and a slump in Japanese chip stocks, highlighting the widespread impact of the AI competition.

The market's negative reaction stems from DeepSeek's breakthroughs in AI training efficiency, which investors fear could reduce the demand for Nvidia's high-end GPUs. Concerns over DeepSeek are further compounded by a broader narrative of hardware competitors and the ability to translate Large Language Model code to avoid Nvidia's CUDA lock-in. DeepSeek's recent success with its low-cost AI model overtaking ChatGPT on the App store has intensified the worries, sparking discussions about a potential "Sputnik moment" for the US AI industry.

ImgSrc: image.cnbcfm.co

References :

• www.techmeme.com: A bear case for Nvidia due to DeepSeek's training efficiency breakthroughs
• www.cnbc.com: Nvidia sheds almost $600 billion in market cap.
• Techmeme: Nvidia's stock drops 16.86%, closing at $118.58, losing nearly $600B in market cap, more than twice as much as any US company has ever lost in a single day

Classification:

• HashTags: #NvidiaStock #AIHardware #TechMarket
• Company: Nvidia
• Target: Nvidia
• Product: GPUs
• Feature: AI chips
• Type: News
• Severity: Major