Nvidia and Chip Stocks Plummet Amid Market Turmoil Over AI Investment Concerns

Reported 2 days ago

Nvidia's stock fell nearly 17%, resulting in a record loss of $589 billion in market capitalization, following the launch of a new AI model by China's DeepSeek that raised concerns about AI spending efficiency. This decline impacted chip stocks widely, with significant drops in companies like Broadcom and Micron. Analysts suggest that if DeepSeek’s innovations are widely adopted, it could change the cost dynamics of AI model training, prompting reactions across the industry and calls for increased urgency among U.S. tech firms in leveraging their advantages.

Source: YAHOO

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