Nvidia's stock has plummeted, wiping out around $589 billion in market value, following the emergence of DeepSeek, a Chinese company that developed a cutting-edge AI model with significantly lower hardware costs. DeepSeek's R1 model was built in just two months on a budget of less than $6 million, sparking investor concerns about the potential decline in demand for Nvidia's premium chips. The broader tech sector, including Microsoft, Alphabet, and Broadcom, also saw declines.

In other trading, Rockchip Electronics was a standout up 4.6% and closing at CN¥164.50, near its 52-week high. Meanwhile, Credo Technology Group Holding lagged, down 30.9% to end trading at $55.60.

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Summing It All Up

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SHSE:603893 NasdaqGS:QCOM NasdaqGS:INTC NasdaqGS:AMD NasdaqGS:NVDA and NasdaqGS:CRDO .

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