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Nvidia Loses $589 Billion in Historic Selloff

Nvidia Loses $589 Billion in Historic Selloff

Nvidia stock took a massive hit on Monday, shedding 17% of its market value in a record-breaking selloff. Investors rushed to offload shares after Chinese AI startup DeepSeek introduced an AI model that directly challenged OpenAI’s ChatGPT. The model, reportedly developed at a fraction of the cost, delivered comparable results, raising concerns over Nvidia’s dominance in the AI sector.

The sharp decline wiped out an astonishing $589 billion from Nvidia’s market capitalization, marking the largest single-day loss in history. CEO Jensen Huang personally saw his net worth shrink by $20 billion as shares plunged.

DeepSeek’s breakthrough underscores the growing competition in AI, particularly from China, where companies are aggressively developing alternatives to U.S.-led AI technologies. Investors now worry that cost-efficient AI models could disrupt Nvidia’s stronghold on high-performance computing, potentially impacting its long-term growth prospects.

Despite the staggering drop, analysts remain divided on Nvidia’s outlook. Some see the selloff as an overreaction, while others warn that rising competition could pressure Nvidia’s valuation further. The coming weeks will be crucial in determining whether Nvidia can recover or if this marks a turning point in the AI chip leader’s dominance.

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