Nvidia’s $589 Billion Market Wipeout Marks Largest in History

Nvidia’s $589 Billion Market Wipeout Marks Largest in History

Nvidia Corp. experienced a historic market value drop on Monday, losing $589 billion in capitalization—the largest single-day loss in U.S. stock market history. Shares plunged 17%, the company’s worst decline since March 2020, following fears over competition from Chinese AI startup DeepSeek. That eclipsed the previous record — a 9% drop in September that wiped out about $279 billion in value

DeepSeek’s release of an AI model rivaling OpenAI's technology, while using significantly less computing power, raised concerns that future AI advancements may reduce demand for Nvidia's high-end chips. This development shook investor confidence, causing widespread selloffs in tech stocks.

Chipmakers Broadcom and Micron Technology dropped over 10%, while the S&P 500’s tech sector fell 5.6%, its steepest one-day loss in over four years. Altogether, Monday’s selloff erased $1 trillion from the stock market, according to Dow Jones Market Data.

Nvidia, a leader in AI chip technology, has driven massive market gains in recent years, bolstered by optimism about AI's productivity potential. However, DeepSeek’s emergence has disrupted this narrative, casting doubt on Nvidia’s previously unchallenged dominance in the sector.