Nvidia sheds almost $600 billion in market cap, biggest one-day loss in U.S. history

[nitpicked]

https://www.cnbc.com/2025/01/27/nvidia-sheds-almost-600-billion-in-market-cap-biggest-drop-ever.html

Nvidia

lost close to $600 billion in market cap on Monday, the biggest drop for any company on a single day in U.S. history.

The chipmaker’s stock price plummeted 17% to close at $118.58. It was Nvidia’s worst day on the market since March 16, 2020, which was early in the Covid pandemic. After surpassing Apple last week to become the most valuable publicly traded company, Nvidia’s drop on Monday led a 3.1% slide in the tech-heavy Nasdaq.

The selloff was sparked by concerns that Chinese artificial intelligence lab DeepSeek is presenting increased competition in the global AI battle. Late last month, DeepSeek unveiled a free, open-source large language model that it says took only two months and less than $6 million to build, using reduced-capability chips from Nvidia, called H800s.

Nvidia’s graphics processing units (GPUs) dominate the market for AI data center chips in the U.S., with tech giants like Alphabet , Meta , and Amazon spending billions of dollars on the processors to train and run their AI models. Analysts at Cantor wrote in a report on Monday that the release of DeepSeek’s latest technology has caused “great angst as to the impact for compute demand, and therefore, fears of peak spending on GPUs.”
(snip)

[Lovie777]

1. I'm trying to understand this.....

DeepSeek, a lot to do with AI.

[ProfessorGAC]

2. Worth Noting

This company was valued at $3.5 TRILLION with $61 BILLION in revenues.
"Potential" has value 60x of total revenue.
Now, the revenue increased rapidly 4Q24 and is still rising, but still...

[OAITW r.2.0]

4. I think a lot of valuation was based on US AI architecture.

Deepseek has apparently proven that a LLM can be built on NVidia last generation chips with a whole lot fewer of them.

And here I thought Bitcoin would be the investment due for this type of market correction.

[newdeal2]

5. A good development, if it leads to less energy needed for AI

[ProfessorGAC]

6. Yeah, I Get That

But, 40-60x revenues?

[OAITW r.2.0]

7. Reminds me of Trump Media.

Everyone wants in, underlying real world realities be damned.

[bucolic_frolic]

3. Other chips whacked today too .... AMD, MU, Intel ... from the few I follow.

Overreaction, if you ignore the idea that DeepSeek is doing AI far cheaper. It says.

I use AI for information, here or there. I hate its responses. They are boilerplate, lack cadence and inflection, and really just hedge and haw right and left, up and down, yes or no. I really hate AI voice clones. Loud monotone delivery, again, lacking emotion and cadence. Sounds almost like the real thing, but only about 88%.

I still think, or wonder, if AI and crypto will all go bust someday.