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Nvidia's $NVDA Shares Drop 18%, Erasing $560 Billion in Market Value Due to DeepSeek

Jan 27, 2025, 04:38 PM

Nvidia Corp., symbol $NVDA, experienced a historic market value loss on January 27, 2025, with shares dropping as much as 18% during the trading session. The decline, triggered by investor concerns over the competitive impact of Chinese artificial intelligence startup DeepSeek, resulted in a record-breaking loss of approximately $560 billion in market capitalization. This surpassed the previous record set by Nvidia in September 2024, when a 9% drop erased about $279 billion. The selloff in Nvidia shares contributed to broader market declines, with the S&P 500 falling as much as 2.3% and the Nasdaq 100 dropping up to 3.6%. DeepSeek's latest AI model, released the previous week, is seen as a competitive alternative to offerings from OpenAI and Meta Platforms Inc., and its low-cost approach has raised concerns about the sustainability of heavy investments in AI by major U.S. companies. The stock's 17% drop marks the largest single day drop in Nvidia's history.