Nvidia's Market Value Takes a Nosedive
In a dramatic turn of events, Nvidia Corporation experienced a significant drop in its stock value, closing down 16.86% on Monday. This unprecedented decline resulted in the company losing approximately $589 billion in market value, marking one of the largest one-day losses in market history.
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Tech Industry Shaken by AI Competition
The tech industry at large felt the tremors of this event, largely due to the rise of DeepSeek, a Chinese artificial intelligence firm. DeepSeek has quickly become a formidable competitor, especially after its R1 reasoning model climbed to the No. 1 spot on Apple Inc.'s App Store, surpassing OpenAI's ChatGPT. Notably, DeepSeek utilizes a modified version of Nvidia's chips, which are less powerful compared to those used by some of its U.S. rivals.
Closing Stock Price Reflects Market Reaction
Following this significant market movement, Nvidia's closing stock price was recorded at $118.42 per share. This event underscores the volatile nature of the tech and AI industries, where innovation and competition can rapidly alter market landscapes.
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