NVIDIA is no longer the world's most valuable company after the largest fall in stock in history.
The chip maker will throw a value of more than $ 589 billion on Monday after the shares fell around 17 percent.
The dive cost the company the equivalent value of the market capitalization of Netflix or the entire GDP of countries such as Ireland, Sweden or Belgium.
Jensen Huang, CEO of Nvidia, personally saw $ 21 billion wiped his assets on Monday because of the shares he owns in the company.
The losses came after investors panicked about the implications of a new Chinese AI that seems to compete with his American rivals but for a fraction of the costs.
The advances of Deepseek have evoked doubts about whether the US will retain its lead in the worldwide race of the advancing AI technology.
The Chinese company has been released free Ai Assistant Last week of which it stands, fewer Nvidia chips uses a fraction of the costs of current models on the market.
Deepseek caught up with his rival chatgpt to become the most downloaded free application that is available in the Apple Store in the US on Monday.
The stock of Nvidia on Monday is the biggest routes in market history
As the losses continue, the tech tried to calm the nerves of investors in a statement on Monday afternoon.
“Deepseek is an excellent AI preface and a perfect example of scaling the test time,” said a company spokesperson in a statement.
'The work of Deepseek illustrates how new models can be made using that technique, which use many available models and bills that are fully executed, is compliant.
“There is a considerable number of Nvidia GPUs and high -quality networks required,” they added.
NVIDIA and the losses of other technical shares have weighed the wider market, with the Nasdaq 3 percent and the S&P 500 that closed 1.5 percent lower.
“Monday are usually quiet for shares when markets are too all time, but not today,” Bret Kenwell, Etoro US Investment Analyst told DailyMail.com.
'The AI ​​space can and will continue to evolve, and as we see today, those developments will sometimes come quickly.
“That said, in a panic rarely ensures a good investment decision.”
Nvidia CEO Jensen Huang lost $ 21 billion on Monday because of the shares he owns in the company
Nvidia will declare more than $ 589 billion in value on Monday
Monday's action is a memory that investors must remain grounded and disciplined with their portfolios, Kenwell added.
“Although owning individual shares and sectors is great, having too much exposure or leverage can exercise an unexpected blow from nothing – especially on days like today.”
Tom Stevenson, investment director at Fidelity International, added: “This development underlines the rapidly changing dynamics in AI and while the situation unfolds, investors closely follow industry.”
It comes after top banker Jamie Dimon warned the US stock market was blown up.
'The asset prices are a bit blown up to every extent. They are in the top 10 percent or 15 percent of the historical ratings, said the JPMorgan Chase CEO last week at the World Economic Forum in Davos, Switzerland.
The US stock market achieved more than 20 percent in 2023 and in 2024 – a remarkable performance that it has not achieved since the end of the 1990s.
