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Nvidia Plummets Almost $955 Billion as Chinese AI Sparks Sell-Off

The West Australian

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Details

Date Published
27 Jan 2025
Priority Score
2
Australian
Yes
Created
8 Mar 2025, 02:41 pm

Authors (2)

Description

Nvidia and other technology shares have plunged, part of a global sell-off as Chinese startup DeepSeek sparked concerns over competitiveness in artificial intelligence and America’s leadership.

Summary

The article reports on a significant downturn in Nvidia's stock value, triggered by concerns over competitive advancements from the Chinese AI startup DeepSeek. This event highlights the growing tensions and competitive dynamics in the global AI industry, raising questions about the future of U.S. leadership. Although the sell-off stresses market volatility, it underscores the aggressive pace of AI development in China and its potential implications for global leadership in AI technology. However, the article does not delve deeply into existential or catastrophic AI risks, nor does it provide a substantial analysis of AI safety or governance.

Body

Alex HarringNvidia plummets almost $955b as Chinese AI sparks sell offNvidia and other US technology firms plunged on Monday, part of a global sell-off as Chinese startup DeepSeek sparked concerns over competitiveness in artificial intelligence and America’s leadership in the sector.Nvidia, the chip designer who has been a major beneficiary of the AI hype, last slid 17.3 per cent. With that, the megacap tech stock was on track to notch its worst day since March 2020.Shares touched lows in the session not seen since October.Nvidia’s losses helped drive other AI trades and lower the broader US market. Micron and Arm Holdings dropped more than 10 per cent and 9 per cent, respectively. Chipmakers Broadcom and Advanced Micro Devices lost more than 16 per cent and 6 per cent, respectively.Read the article