Nvidia's shares experienced a sharp decline on Monday, dropping by 17%, due to increasing concerns that the advanced and cost-effective artificial intelligence model developed by the Chinese startup DeepSeek may negatively impact major companies' investments in advanced AI technologies provided by Nvidia. This downturn indicates significant shifts in the AI market, as reports confirmed investors' worries about the impact of this competition on major companies read more here.
Chinese DeepSeek threatens the dominance of major companies in the AI sector In recent years, tech giants such as Microsoft, Alphabet, and Amazon have invested billions of dollars into their own AI platforms, helping them expand their infrastructure to meet the growing demand for advanced AI technology. These investments have contributed to making Nvidia one of the most valuable companies in the semiconductor industry, but the entry of Chinese DeepSeek could change this dynamic, as many financial analysts have pointed out see more.
Massive losses for Nvidia: Significant drop in market value Nvidia's shares fell to $118.58 on Monday, resulting in a loss of approximately $600 billion in market value. This loss is more than double the combined market value of Coca-Cola and Chevron. Additionally, the losses surpassed the market capitalization of major companies such as Oracle and Netflix, according to recent reports read the details here.
Despite the losses, Nvidia remains a market leader Despite these significant losses, Nvidia's shares continue to show exceptional long-term growth, having increased dramatically over the past 12 months. Since the launch of ChatGPT by OpenAI in November 2022, the stock price has risen more than eightfold.
In after-hours trading on the U.S. stock market, Nvidia's stock recorded an increase of 1.35%, equivalent to $1.61 per share, trading at $120.18 per share.
