Nvidia Is Suffering Biggest Market Rout in History

Nobody is feeling the shock of Chinese startup DeepSeek's entry into the AI market more than Nvidia. The chip-maker's stock had plunged 16% as of midday Monday, wiping off more than $500 billion in market value, reports the Wall Street Journal. That puts the company on track for the biggest single-day market rout in history, notes Bloomberg. And it's not even close: The current record is a $279 billion loss posted by Nvidia in September. Monday's losses have brought Nvidia's market value back under $3 trillion, reports NBC News, which adds some context: The company's shares are still up nearly 500% over the last two years.

DeepSeek has jolted the markets because its new AI assistant is now the No. 1 download for iPhones, but the company claims to have built the model on the cheap, without the specialized chips made by Nvidia and other industry leaders. All of which "has pulled the rug from under global companies riding the AI wave, including chip makers, infrastructure suppliers and power stocks, as investors question the outlook for AI spending," per the Wall Street Journal. (More Nvidia stories.)