Nvidia Corp. lost more than $500 billion as the US stock market plunged amid the investor concern over Chinese artificial intelligence (AI) startup DeepSeek
The S&P Index also plummeted as much as 2.3 per cent on Monday over Deep Seek. Major concerns have been voiced over the low-cost Chinese AI model threatening dominance in the current AI leaders’ world.
The DeepSeek startup had last week launched a free AI assistance that it said uses less data at a fraction of the cost of incumbent services, taking over its US rival ChatGPT in Apple store downloads by Monday.
Owing the weight that Nvidia carries in major indexes, throughout the day the US market saw the shares value dropping and rippling through the rest of the market.
Meanwhile, INDU (Dow Industries) showed an upward trend with nearly 0.48 per cent in the green zone.
Notably, Nvidia shares tumbled as much as 18 per cent, which is the biggest drop since March 2020. The $560 billion wipeout over took its previous record of a 9% record in September, which had cleaned out around $278 billion in value, a Bloomberg report said.
Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburg, said that are still many unanswered questions about the DeepSeek model and its impact.
“Today is a drubbing for these stocks, but I don’t necessarily think whatever’s going to happen in the short while here – the next couple of days – is where they are ultimately valued,” she was quoted as saying by Reuters.
As per preliminary data, the S&P 500 lost 87.85 points, or 1.44%, to end at 6,013.39 points, while the Nasdaq Composite lost 607.47 points, or 3.04%, to 19,346.83. The Dow Jones Industrial Average rose 291.54 points, or 0.67%, to 44,715.79.
Top gainers and losers
Top gainers in the S&P included American Water Works Company Ltd., AT&T inc., HCA Holdings, Consolidated Edison Inc, etc. The top losers, meanwhile, comprised Vistra Corp, down by over 27 per cent, Arista Networks Inc, Constellation Energy Corp, Quanta Services Inc., Nvidia Corp, etc.
In NASDAQ, the top gainers were American Electric Power Company Inc, PepsiCo Inc, Exelon Corp, Kraft Heinz Co, CoStar Group Inc and CSX Corp. The top decliners’ list figured the names of Constellation Energy Corp, Marvell Technology Inc, NVIDIA Corp, Broadcom Inc, and Micron Technology Inc.
Johnson & Johnson, Salesforce Inc., Travelers Companies Inc, Coca-Cola Co, Procter & Gamble Co, Apple Inc were among the top gainers at DOW. In the top decliners, figured Nvidia Corp, Cisco Systems Inc., Caterpillar Inc., Microsoft Corp, American Express Co among others.
(with Bloomberg, Reuters inputs)
