Nvidia's Pre-Market Drop

In a surprising turn of events, Nvidia's shares experienced an 8% drop in premarket trading on Monday. This decline comes as the Chinese AI startup DeepSeek makes waves in the technology sector, challenging the long-standing dominance of Western AI technologies.

DeepSeek's Unexpected Success

DeepSeek's R1 model has unexpectedly topped the Apple App Store charts in the US, raising questions about the future of capital-intensive AI hardware investments. This development has not only affected Nvidia but has also sent ripples across the tech industry and cryptocurrency markets.

Market Reactions

At 4:04 am ET, Nvidia's shares were down by 8.08% to $131.10 in premarket trading in New York. This significant drop reflects the growing concerns among investors about the sustainability of Western AI dominance in the face of emerging competitors like DeepSeek.