Stock price data from financial news platforms like Bloomberg or Yahoo Finance

Nvidia Shares Plummet 15%, Erasing $500 Billion in Largest Single-Day Loss Amid China's DeepSeek AI Launch

Jan 27, 2025, 02:50 PM

Nvidia Corp.'s shares plunged as much as 15% on Monday, erasing over $500 billion in market value—the largest single-day loss in stock market history—as investors reacted to the emergence of China's DeepSeek. The AI startup recently launched its open-source large-language model, R1, developed in just two months at a cost of under $6 million, claiming performance rivaling U.S. counterparts like OpenAI. The unprecedented market cap loss surpasses the previous record set by Meta's $251 billion drop in 2022. The Nasdaq Composite Index fell nearly 4%, with tech giants Microsoft, Meta Platforms, and Alphabet also tumbling, amid concerns that China may be overtaking U.S. leadership in artificial intelligence. Nvidia's stock hit its lowest level since October 3, highlighting investor anxiety over future demand for AI-related chips and spending.