Nasdaq drops 3% as China's DeepSeek AI model hits tech shares
AI leader Nvidia sank 17%, and it erased about $593 billion in stock market value, the deepest ever one-day loss for a company on Wall Street, according to LSEG data. It was more than double the previous one-day record loss, set by Nvidia last September.
An index of semiconductor stocks dropped 9.2% in its biggest single-day percentage fall since March 2020.
Chinese startup DeepSeek has rolled out a free assistant it says uses cheaper chips and less data, raising questions about investor expectations that AI will drive demand along a supply chain from chipmakers to data centers.
DeepSeek's AI Assistant by Monday had overtaken U.S. rival ChatGPT in downloads from Apple's App Store.
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