The US stock market last night reflected concerns from DeepSeek, a Chinese artificial intelligence company, that revealed its R1 open-source model surpasses OpenAI’s o1 in certain aspects but at a significantly lower development cost and without the need for the latest chip technology. The stocks of many tech companies plummeted.
NVIDIA, at the center of this anxiety, saw its stock price drop by up to 16.97%, closing at $118.42 per share. The company’s market value evaporated by a whopping $600 billion in a single day, or approximately 20 trillion baht, setting a new record in the US stock market. The main point being that the demand for high-performance GPUs may no longer be crucial, potentially affecting NVIDIA’s future revenue.
Hardware-related stocks were also heavily impacted, with Dell Technologies down by 8.7%, Hewlett Packard Enterprise by 5.8%, Oracle by 13.8%, and Super Micro Computer by 12.6%. However, not all tech giants suffered the same fate, as the “Magnificent 7” companies like Apple (+3.2%), Meta (+1.9%), and Amazon (+0.2%) did not experience significant decreases in their stock prices.
It is worth noting that NVIDIA’s $600 billion market value loss in a single day is massive, especially when compared to Coca-Cola’s $275 billion market value. Despite the sharp decline in stock prices, NVIDIA still holds the third-highest total market value among companies, amounting to $2.9 trillion, trailing behind Apple ($3.45 trillion) and Microsoft ($3.23 trillion).
TLDR: DeepSeek’s R1 model rattled the US stock market, causing NVIDIA’s stock to plummet by almost 17%, wiping out $600 billion in market value in a single day. Other hardware-related stocks also saw significant declines, but tech giants like Apple and Amazon managed to weather the storm. NVIDIA still maintains a high market value, ranking third behind Apple and Microsoft.
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