Top line
NVIDIA set a suspicious Wall Street record on Monday. The inventory at the forefront of the US -led artificial intelligence revolution was afraid of Deepseek, a Chinese AI company who developed Chatgpt rivals in just a part of the reported costs of American friends.
NVIDIA’s shares spent a historic bad Monday.
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Important facts
NVIDIA’s shares have shown 17 % and dropped 17 %, suffering from the worst percentage of the day since March 2020.
NVIDIA lost $ 589 billion on Monday. This is the largest wipe out of the largest day per day, twice as much as the market capitalization of $ 279 billion other than NVIDIA on September 3, 2024. The 1 billion loss on February 3, 2022 is the third largest day.
The slide knocked NVIDIA from the world’s most valuable company, and sent it to $ 3.5 trillion to $ 2.9 trillion than Apple and Microsoft.
NVIDIA has found a wider US stock loss as the benchmark S & P 500 dropped by 1.5 % and the high -tech NASDAQ decreased by 3.1 %.
In the afternoon statement, NVIDIA’s spokesman calls the DeepSeek model “excellent AI progress” and requires a “considerable number” of the NVIDIA graphics processing unit (GPU). I comply with “.
The reason why NVIDIA shares fell
The release of DeepSeek’s large -scale model, which shook DeepSeek’s large -scale AI control, as in most other advanced AI programs, in consideration of the DeepSeek models trained in NVIDIA GPU. At first, it may not look like NVIDIA’s negative catalyst. However, Chinese companies stated that they spent only $ 5.6 million in developing large language models in NVIDIA technology, and experts speculate that this is a remarkable underestimation, but the rise in NVIDIA Stock. The core papers behind them are covered. NVIDIA’s net income rose $ 4.8 billion in 2022 to an estimated $ 66.7 billion in 2024 in 2024. Yardeni’s Ed Jardeni of Yardeni says, “If a large -scale high -tech company can design an AI system from DeepSeek using a cheaper GPU … it may not be a happy development for NVIDIA” I mentioned in the memo.
Surprising facts
NVIDIA’s market capitalization of nearly $ 600 billion on Monday is larger than the individual market value of all American companies, except for 13 companies, and health insurance companies, EXXON MOBIL, a major petroleum, and retailer Costco. It is larger than the market capitalization of the clock.
Forbes evaluation
According to Forbes estimates, Jensen Huang, the CEO of NVIDIA, has gained 21 billion dollars on Monday. Huang is the largest Shareholder of NVIDIA, who has won 3 % of Silicon Valley companies.
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