DeepSeek sparks global AI selloff, Nvidia losses about $593 billion of value
DeepSeek launched a free AI assistant that it says uses less data at a fraction of the cost of incumbent services. By Monday, the assistant had overtaken U.S. rival ChatGPT in downloads from Apple's app store.
This led the tech-heavy Nasdaq to fall 3.1% on Monday. Nvidia was the Nasdaq's biggest drag, with its shares tumbling just under 17% and marking a record one-day loss in market capitalization for a Wall Street stock, according to LSEG data. Nvidia's market-cap loss on Monday was more than double the previous one-day record, set by Nvidia last September.
The Nasdaq's next-biggest drag was chipmaker Broadcom Inc, which finished down 17.4%, followed by ChatGPT backer Microsoft, which fell 2.1% and then Google parent Alphabet, which ended down 4.2%.
The Philadelphia semiconductor index tumbled 9.2%, for its biggest percentage drop since March 2020 and its biggest decliner was Marvell Technology, which tumbled 19.1%.
U.S. equity declines followed a selloff that started in Asia, with Japan's SoftBank Group finishing down 8.3%, and moved through Europe where ASML fell 7%.
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