Nvidia Stock Plunges 13% in Single-Day Record Loss
Nvidia’s stock took a significant hit as trading began on Jan. 26, dropping 13% and wiping out $465 billion in market value. This marks the largest single-day market cap decline in history, according to data from Bloomberg.
Comparing Losses
To put this loss into perspective, Nvidia’s market cap decrease surpasses the $375 billion valuation of Ethereum, the world’s second-largest cryptocurrency. This single-day loss also exceeds the combined market caps of leading digital assets like XRP, Tether’s USDT, and Solana.
- XRP market cap: $173 billion
- Tether’s USDT market cap: $139.3 billion
- Solana market cap: $114.3 billion
Together, these assets have a cumulative market cap of $426.6 billion, nearly $40 billion lower than Nvidia’s loss.
Market Impact
The sharp decline in Nvidia’s stock has been attributed to the emergence of Chinese AI startup DeepSeek, which recently introduced a revolutionary open-source AI model. This model poses a significant challenge to established players like OpenAI and Meta, leading to concerns among market observers.
Reports suggest that DeepSeek may be utilizing up to 50,000 Nvidia H100 chips to power its operations, raising questions about the rationale behind Nvidia’s stock plummet.
DeepSeek’s Challenges
At present, DeepSeek’s platform has limited access, allowing registrations only from users with mainland China phone numbers. Additionally, the Kobeissi Letter has reported that the company is facing service disruptions due to what it describes as a “large-scale malicious attack.”