Nvidia, a global leader in accelerated computing, saw its market value drop by $589 billion on Monday following a 17% decline in its stock during midday trading on Wall Street.
The sharp drop sent ripples across global markets, affecting major indices such as the S&P 500, which fell by 2.3%, and the Nasdaq 100, which dropped by 3.6%.
European stock exchanges also felt the impact, with Frankfurt and Paris closing in the red while London remained flat. In the technology sector, Microsoft and Alphabet saw declines, while Meta managed to trade positively.
Nvidia’s dominance in the AI semiconductor market has made it a key player in the AI boom. However, the rise of DeepSeek, a Chinese chatbot platform that recently surpassed ChatGPT as the top-rated free app on Apple’s US app store, has introduced new competition.
DeepSeek’s success comes despite US export restrictions on advanced GPU chips to China, including Nvidia’s chips. Reports suggest that DeepSeek trained its latest AI model on Nvidia’s H800 chips at a fraction of the typical cost.
Adding to the industry shake-up, President Donald Trump recently announced the Stargate Project, a strategic collaboration between Oracle, Japan’s SoftBank, and OpenAI.
The initiative aims to boost US AI capabilities, create thousands of jobs, and bolster national security.
Post A Comment: